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U.S. DEPARTMENT OF
HEALTH, EDUCATION, AND WELFARE
As of June 30, 1955
OvETA CuLP Hopssy, Secretary
Vacancy, Under Secretary
OFFICE OF THH SECRETARY
ROSWELL B. PERKINS........ Assistant Secretary for Program Analysis.
BRADSHAW MINTENER....... Assistant Secretary for Federal-State Rela-
tions.
CHESTER S. KEEFER 5.6. 3. Sees Special Assistant for Health and Medical
Affairs.
DoNALD M. COUNIHAN ....... Legislative Liaison Officer.
TERENCE P. SCANTLEBURY ..... Haecutive Secretary.
WILLIAM C. MCCAMANT...... Assistant to the Secretary.
PARKS: Mis BANTACS 2 sali ea General Counsel.
RUFUS TE: MILES, SRe. aes a ee Comptroller.
HORDYCEUULR ART se... ce eee eee Director of Administration.
ROBERT @ J: (DECAMP os, sree ce Director of Field Administration.
J. eOTE WARE FLUNTER Sehr: cust cit Acting Director of Publications and Reports.
FREDERICK H. SCHMIDT...... Director of Security.
SOCIAL SECURITY ADMINISTRATION
CHARLES I. SCHOTTLAND. ..... Commissioner of Social Security.
WILLIAM L. MITCHELL....... Deputy Commissioner of Social Security.
VICTOR CHRISTGAU ..... Director, Bureau of Old-Age and Surviwors
Insurance.
JAY TR RONEY fe ree Director, Bureau of Public Assistance.
J. DEANE GANNON...... Director, Bureau of Federal Credit Unions.
MARTHA M. ELIOT...... Chief, Children’s Bureau.
PUBLIC HEALTH SERVICE
LEONARD A. SCHEELE..... .. . Surgeon General.
W. PALMER DEARING........ Deputy Surgeon General.
JACK BEASUB Ss ie rcee wise ik Chief, Bureau of Medical Services.
CHARLES E. BURBRIDGE. . . Superintendent, Freedmen’s Hospital.
Otis L. ANDERSON. ..... Chief, Bureau of State Services.
WILLIAM H. SEBRELL, JR. . Director, National Institutes of Health.
OFFICE OF EDUCATION
SAMUEL M. BROWNELL ....... Commissioner of Hducation.
J, KENNETH DAPELE: he 3% cle Bee . Deputy Commissioner of Hducation.
ii
FOOD AND DRUG ADMINISTRATION
NauseGue re. IsARRIOK.. . 2 « «0 0 0 Commissioner of Food and Drugs.
OR ae TAARVEY 6 00. <8 ee eo 8's Deputy Commissioner of Food and Drugs.
OFFICE OF VOCATIONAL REHABILITATION
ity tu SWITZER... 6 5 ce ee ee Director of Vocational Rehabilitation.
Prony H. WEREBEE ..-. .... 4. Deputy Director of Vocational Rehabilitation.
SAINT ELIZABETHS HOSPITAL
WINFRED OVERHOLSER ....... Superintendent.
[AMOISONT I. DUVAL .....s-eece Assistant Superintendent.
FEDERALLY AIDED CORPORATIONS
MONI AVIS . Cb. oe te et Superintendent, American Printing House for
the Blind.
PPONARD M.-ELSTAD. «3.50 2 ee President, Gallaudet College.
MorpEcAI W. JOHNSON....... President, Howard University.
REGIONAL DIRECTORS
LAWRENCE J. BRESNAHAN..... Region I, Boston, Mass.
JOSEPH B. O’CONNOR.......-. Region II, New York, N. Y.
MIcHAEL J. SHORTLEY ....... Region III, Washington, D. C.
PRTGHARD IES IIYLE . . 2. 6s --- Region IV, Atlanta, Ga.
BinrvHie H. HOscn....).... + Region V, Chicago, Ill.
are. DOABN ..... 6. see Region VI, Kansas City, Mo.
Sees. ISOND . . we ee eo 8 - Region VII, Dallas, Tex.
ALBERT H. ROSENTHAL..... . . Region VIII, Denver, Coio.
Weer WeTAUNTER. «2. 0 0 - +. Region IX, San Francisco, Calif.
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Letter of Transmittal
DEPARTMENT oF HrAttu, EpucaTion, AND WELFARE.
Washington, D. C., December 1, 1956.
Dear Mr. Presipent: I have the honor to submit herewith the
annual report of the Department of Health, Education, and Welfare
for the fiscal year ending June 30, 1955.
Respectfully,
Secretary.
THE PRESIDENT,
THe Wuite Hovss,
Washington, D.C.
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Contents
Memeecreionys Report: . 6. ee
Social Security Administration .........
Reeeeriieaith Service... 2... 1 1 2 eee
Me PE CUCOLION © 6.8. ce we ee el
Food and Drug Administration. ........
Office of Vocational Rehabilitation. ......
Berehiizabeths Hospital’. 2 wk
American Printing House for the Blind
Gallaudet College ..... sc pd OR RS NE
Mere University Se. ST
A detailed listing of the contents of this report, by
topic headings, will be found on pages 223-230.
atte eee ee
ea Sem
The Secretary's
Report
“Government must work to stabilize the buying power of the
dollar, else the value of the pension, the insurance policy and the
savings bond is eroded away.
“Government, through social security and by fostering ap-
plicable insurance plans, must help protect the individual against
hardship and help free his mind from anxiety.
“Government must use its full powers to protect its citizens
from depression, unemployment and economic distress.
“Government, my friends, must have a heart as well as a head.
It must encourage, guide, backstop and supplement—but never
dominate or attempt to regiment our people.”
Tuis pAssaGE from an address by President Eisenhower admirably
sums up the general philosophy under which the Department of
Health, Education, and Welfare sought to carry out its responsibilities
during the fiscal year 1955—the second full year in the history of the
Department.
It is the concept, in fact, which led to the submittal to Congress
in April 1953 of the plan for the founding of the Department—the
first to be submitted by President Eisenhower for reorganization of
the executive branch of the Federal Government.
Establishment of the Department gave appropriate recognition to
the increasing importance which the American people place on better
health, improved education, and greater individual security—and to
the concern of this administration that these factors receive continuing
attention throughout the Nation.
Throughout the year, the Department has kept constantly in mind
the concept of encouragement, guidance, and supplementation which
1
2 Department of Health, Education, and Welfare, 1955
ea eee
the President describes as the proper role of the Federal Government
in these fields. The fact that the Department’s programs deal so 1n-
timately with the close and varying personal concerns of the individual
and his family gives cardinal importance to the avoidance of any act
or attitude that might lead to the domination or regimentation of the
individual against which the President sounds a warning.
The opening pages of this annual report deal principally with those
events of the fiscal year 1955 which are departmentwide in scope or
are notably significant in the history of the Department. The reports
of the five major units which make up the Department—the Public
Health Service, the Social Security Administration, the Office of Edu-
cation, the Food and Drug Administration, and the Office of Voca-
tional Rehabilitation—as well as other related agencies and units will
be found in subsequent pages.
It is appropriate here, however, to describe the major developments
of the year which have special importance to the national welfare.
In certain instances, moreover, these illustrate the philosophy of the
President, set forth above. In essence, taken together, these represent
the highlights of a continuing record of achievement on behalf of the
health, education, and general welfare of the people of the United
States.
Progress in Health
The health of the American people continues to be good. Only a
few of the health statistics submitted by the States to the Public Health
Service of the Department and gathered by the Service itself need be
cited here.
The general death rate from all causes during 1954, the latest period
for which figures were available when this report was prepared, was
9.2 per 1,000 of population, representing a slight decline over the
previous year. Maternal deaths of only 5.3 per 10,000 live births and
infant mortality of 26.6 per 1,000 live births also showed a decrease
in 1954. ‘This is the 18th successive year in which the infant death
rate continued to decline, one yardstick of the remarkable progress
in curative and preventive medicine.
The recent improvements in health are the work of many thousands
of individuals and many hundreds of institutions—practicing physi-
clans; scientists and their aides; the staff members of hospitals and
research institutions, including those of private industry; the great
voluntary health organizations which the American people generously
support; and public health agencies in the States and communities.
Illustrative of some of the challenges that lie ahead for American
medicine and science is the fact that cancer and diseases of the heart
The Secretary’s Report 3
and circulatory system were responsible for more than two-thirds of
all deaths in 1954.
The Federal Government plays an increasingly important role,
both in the extension, by the authority of the Congress, of its own
research and control activities and through its grants-in-aid to States,
private hospitals and laboratories, and individuals. There has been
some variation, over the years, in the degree and scope of the Federal
role, determined, in part, by the relative importance of various health
projects and the capacities of both Federal and non-Federal research
programs to move forward with maximum productivity. There has
been occasional and understandable difference of opinion on these
decisions. The total effect, however, of Federal participation in medi-
cal research and in the control of illness has been very substantial
advancement of the frontiers of medical knowledge and improvement
of mankind’s armament for the ceaseless war against disease and
disability.
Public Health Service—Among notable advances in research con-
ducted at the Public Health Service’s National Institutes of Health
during the fiscal year were extensive field trials which demonstrate
the effectiveness of a cytologic test to detect early cancer of the cervix
on a mass basis. New knowledge was obtained regarding the
cause and prevention of retrolental fibroplasia, a blinding eye disease
which has been affecting 50 percent of the smaller premature infants.
Studies of tissue culture which culminated during the year included
the discovery of a previously unknown group of viruses which affect
the respiratory system. This discovery has importance for future
research on infections of the upper respiratory tract, including the
common cold. Development of a multivirus vaccine for many of these
ailments by scientists of the National Institutes of Health made con-
siderable progress during the year.
Research activities in air pollution were expanded this year at the
Robert A. Taft Sanitary Engineering Center in Cincinnati, Ohio,
a focal point for research on the relationship of the environment to
human health. An Ad Hoc Interdepartmental Committee on Air
Pollution (representing the Departments of Agriculture; Defense;
Health, Education, and Welfare; and Interior; the Atomic Energy
Commission; and the National Science Foundation) was established
at the invitation of the Secretary of Health, Education, and Welfare.
It has recommended a Federal program of research and technical
services on air-pollution problems.
In 1954 Congress broadened the local-State-Federal hospital
survey and construction program to include diagnostic and treatment
centers, chronic-disease hospitals, rehabilitation centers, and nursing
homes. At the close of the 1955 fiscal year, 28 States had applied for
4. Department of Health, Education, and Welfare, 1955
survey and planning funds under this program. Seven States had
completed revision of the statewide plans required under the law.
Construction project applications, which can be made only after sur-
veys have been completed, had been received from two States.*
In August 1954, President Eisenhower approved a bill authorizing
transfer of Indian health activities from the Department of the In-
terior to the Department of Health, Education, and Welfare, effective
July 1,1955. During the fiscal year, the Public Health Service worked
closely with the Bureau of Indian Affairs in anticipation of the trans-
fer of this program, which involved some 3,400 employees and real
property valued at $40 million. A new Division of Indian Health was
established in the Public Health Service to administer this program.
The development by Dr. Jonas Salk of a vaccine effective against
paralytic poliomyelitis was among the most dramatic accomplish-
ments of American science during the year. This remarkable achieve-
ment on behalf of the children of the Nation was signalized by the
Congress by a substantial monetary award to Dr. Salk and authoriza-
tion of a medal to memorialize his discovery. In April 1955, Dr. Salk
and Mr. Basil O’Connor, president of the National Foundation for
Infantile Paralysis, which had supported the work of Dr. Salk and
his associates, were awarded special citations by the President.
Licenses for the manufacture of the new vaccine were granted six
pharmaceutical concerns on April 12, 1955. It was apparent, how-
ever, that the vaccine would remain in short supply throughout the
poliomyelitis season. Acting on the direction of the President, the
Secretary began to develop plans for assuring an equitable distribu-
tion of the vaccine that was available. The plans were developed in
consultation with representatives of the governors of the States, the
medical and health professions, the pharmaceutical and drug indus-
try, public interest groups, and others concerned with the problem.
The Secretary recommended a system of voluntary allocation and
distribution of the vaccine while it remained in short supply. This
recommendation was based on the conviction that a voluntary plan
was the best way to assure an orderly and equitable sharing in the
benefits of this medical discovery for the entire Nation. The Secre-
tary also recommended the creation of a national advisory committee
to advise on matters associated with the distribution of the vaccine,
including the establishment of priority groups. These recommenda-
tions were accepted by the President. A National Advisory Commit-
tee on Poliomyelitis Vaccine was appointed by the Secretary, under
the chairmanship of Dr. Chester Scott Keefer, Special Assistant to
the Secretary for Health and Medical Affairs. Shortly after the close
1On July 8, 1955, the first project was approved under the new program—a nursing home
for Pinal County, Florence, Arizona.
The Secretary’s Report 5
of the fiscal year, at the request of the President, the Congress author-
ized the expenditure of $30 million for grants to the States for
purchase of the vaccine.
Additional details on the distribution program, as well as the activi-
ties of the Public Health Service with regard to safety and effective-
ness of the vaccine, are contained in the report of the Public Health
Service.
The Food and Drug Adminstration, whose duties are fundamen-
tally concerned with health, was subject to thorough study during the
latter part of the fiscal year by 14 distinguished members of a Citizens
Advisory Committee authorized by the 83d Congress. The two main
conclusions and recommendations of the Citizens Advisory Com-
mittee, delivered to the Secretary on July 7, 1955, were that:
1. The Food and Drug Administration had insufficient funds, staff,
and facilities to carry out its statutory responsibilities to protect the
public health. A three to fourfold increase in personnel and facili-
ties should be achieved within 5 to 10 years.
2. A more effective job of law enforcement could—and should—be
accomplished. An expanded and improved informational and educa-
tional program was urged.
Midway in the fiscal year, the Food and Drug Administration began
expanded research and educational efforts to improve the sanitary
handling of grain. The regulatory program with respect to rodent-
contaminated and insect-infested grain was resumed, with 12 carloads
totaling more than a million pounds being seized during the year.
Many times this amount was voluntarily diverted from human
consumption.
The intensified grain sanitation program was recommended by a
17-member technical committee appointed jointly by the Secretaries
of Agriculture and Health, Education, and Welfare. Both Depart-
ments, as well as the Fish and Wildlife Service of the Department of
the Interior, are cooperating in this effort. Levels of contamination
on which seizure decisions are based will be changed progressively as
growers, shippers, and grain-elevator operators further improve their
handling of this vital raw food.
Two amendments to the Federal Food, Drug, and Cosmetic Act
were put into effect by the Food and Drug Administration during the
year.
One amendment facilitates the establishment and amendment of
food standards by simplifying ponderous and _ time-consuming
procedures.
A second amendment enacted during the year provides a simplified
procedure for establishing safe tolerances for pesticide chemicals
which are necessary and useful in agriculture. Under the new pro-
6 Department of Health, Education, and Welfare, 1955
ee ae
cedure, 23 petitions for tolerances or exemptions therefrom were sub-
mitted during the year. Final action was taken on 4.
Amended definitions and standards of identity were promulgated
for several cheeses, cheese foods, cheese spreads, enriched farina, cat-
sup, and certain canned vegetables.
The Office of Vocational Rehabilitation, a third unit of the Depart-
ment concerned with health, was engaged chiefly this year in expand-
ing its program under the Vocational Rehabilitation Amendments
recommended by the President and unanimously enacted by Congress
in 1954. |
“This law is especially noteworthy in two respects,’ President
Eisenhower said at the signing ceremony. “In the first place, it re-
emphasizes to all the world the great value which we in America place
upon the dignity and worth of each individual human being. Second,
it is a humanitarian investment of great importance, yet it saves sub-
stantial sums of money for both Federal and State Governments.”
Already, this legislative landmark is bringing to a greater number
of handicapped men and women the increased self-respect that comes
from earning a living instead of depending upon others. A down-
ward trend in the number of disabled workers restored to useful em-
ployment was halted and turned upward by the close of the fiscal year.
To achieve a substantial expansion of the State-Federal vocational
rehabilitation system, Congress appropriated $4 million more for this
fiscal year than for the preceding year. Although State fiscal com-
mitments were determined prior to enactment of the new law, a num-
ber of States moved to match the increased Federal funds with larger
State appropriations.
Money alone, however, will not rehabilitate handicapped workers.
More rehabilitation workers must be trained, more public and private
agencies must lend a hand, and rehabilitation techniques must be re-
fined and improved. All these are essential if vocational rehabilita-
tion is to achieve its goal—prompt and effective help to every disabled
person who needs it.
To increase the supply of trained rehabilitation workers, 80 teaching
grants were made by the Department’s Office of Vocational Rehabilita-
tion, 87 short-term workshops or institutes were sponsored, and more
than a thousand traineeships were awarded. Physicians, nurses, physi-
cal therapists, occupational therapists, psychologists, social workers,
rehabilitation counselors, and speech therapists are among those being
prepared for the expanded rehabilitation program.
To expand further the Nation’s capacity to help disabled workers
return to useful work, as well as to improve existing rehabilitation
facilities, Federal grants were made to 130 public and private non-
profit organizations. Many sheltered workshops or specialized re-
The Secretary’s Report 7
LL
habilitation centers were thus enabled to provide services to more
handicapped people. To help improve rehabilitation methods, a Na-
tional Advisory Council on Vocational Rehabilitation, appointed this
year, approved 22 applications for support of promising research and
demonstration projects.
Taken together, these measures will make it possible to rehabilitate
more disabled workers. It is important also that each disabled person
begin his journey to personal and economic independence promptly—
as soon as possible after suffering his disabling illness or accident. In
this way, his skills do not lapse from disuse and his savings are not
swept away by lengthy unemployment.
The 1954 “disability freeze” amendment to the Social Security Act
protected the benefit rights of workers insured under old-age and
survivors insurance who become permanently and totally disabled.
During fiscal 1955, 46 States and Territories had designated their
vocational rehabilitation agencies to determine or share in the deter-
mination of whether or not an applicant for “disability freeze” pro-
tection qualified for such protection.
During fiscal year 1955, the first in which the “disability freeze” was
in effect, State vocational rehabilitation agencies were notified of
62,800 disabled men and women interested in securing rehabilitation.
Saint Hlizabeths Hospital, the public mental hospital in the District
of Columbia, observed its centennial during 1955—marking a century
of progress in psychiatry and treatment of the mentally ill.
Major events included a conference of national and international
leaders in psychiatry; the completion of a new Intensive Treatment
Building at the hospital; and the production of a pageant, staged and
acted by patients, depicting the life of the hospital’s founder, Dorothea
Lynde Dix, and subsequent progress in the treatment of the mentally
ill. Scenes from the pageant were shown on a nationwide television
network as part of the Department’s continuing effort to bring about a
a better public understanding of mental illness and psychiatric
treatment.
Freedmen’s Hospital was also the subject of intensive study during
the year, in a long-delayed effort to chart a future course of services
to the District of Columbia area and the Nation.
Distinguished business and civic leaders and members of the medical
and nursing professions composed the Freedmen’s Hospital Study
Commission. For the consideration of the Secretary, the Study Com-
mission recommended that a new teaching hospital structure be built
and that Freedmen’s be affiliated with the Medical School of Howard
University.
On January 31, 1955, President Eisenhower, in a special message
to Congress, had outlined a number of measures for the general im-
8 Department of Health, Education, and Welfare, 1955
provement of the health of the Nation. As has been indicated, a
number of these measures were, in one form or another, adopted by
Congress. Among the measures recommended in the health message
was a proposal for helping Americans meet the rising costs of medical
care through establishment of a Federal health reinsurance service to
encourage private health insurance organizations to offer broader
benefits to insured individuals and to extend coverage to more people.
Another proposal was that action be taken to authorize matching
grants to the States to help finance the costs of medical care for pub-
lic assistance recipients—the aged, the permanently and totally dis-
abled, the blind, and children deprived of parental care. No action
was taken by Congress on these proposals during the period covered
by the report.
Progress in Education
The serious problems confronting the Nation’s schools and colleges
in terms of shortages in teachers and buildings were of great concern
to the Department during the year. This concern was expressed in
legislation developed by the Department and submitted by President
Eisenhower to Congress to mount an attack on the grave classroom
shortage in the Nation’s public schools.
School enrollment, which has continued to increase, reached a total
of more than 38 million during the year. It is expected to climb to
more than 46 million by 1960. Factors contributing to the unprece-
dented upsurge in school enrollment are an increased birthrate, an
increase in the proportion of school-age children attending school, and
an increase in the proportion of students finishing high school.
Although construction of schools reached a new high with the
building of 60,000 classrooms during the year, proper school housing
for the new students and to replace obsolescent buildings is not being
built fast enough. President Eisenhower’s special message to Con-
gress in January 1954 proposed local, State, and Federal action to
alleviate this grave—and growing—shortage of classrooms. The Pres-
ident’s proposal was for a 3-year program of a fourfold nature:
1. That the Federal Government buy the bonds of school districts
which cannot market their bonds at reasonable rates of interest. The
President asked for an appropriation of $750 million for this pro-
gram, which had the advantage of being able to permit school dis-
tricts to move quickly in offering bonds for sale to the public.
2. That the States and the Federal Government, acting together,
encourage more general use of a plan already tested in some States.
In these States, school districts which are unable to finance new build-
ings rent them from State agencies created to build schools. Under
the President’s plan, the Federal Government would have helped
The Secretary’s Report 9
facilitate the issuance of construction bonds by these agencies by ad-
vancing one-half of an initial reserve fund and agreeing to replenish
thisshareasneeded. _
3. That a limited program of direct State and Federal grants be
authorized. These grants would have gone, on the basis of proved
need, to those school districts which cannot either repay borrowed
money or afford the cost of renting a new building and would have
been sufficient to permit them to qualify for assistance under one or
the other of the foregoing proposals. An appropriation of $200 mil-
lion was requested for this part of the program.
4, That programs of statewide action aimed at removing many of
the long-standing obstacles to local financing of school construction
be encouraged. The Federal Government under the program would
have paid one-half the administrative cost of programs of this kind.
The 88d Congress authorized 53 State and Territorial Conferences
on Education, to be followed by a White House Conference on Edu-
cation. The State and White House Conferences on Education were
designed to deal with all the major problems of American education
in a very fundamental way. The White House Conference was di-
rected to “consider and report to the President on significant and
pressing problems in the field of education.”
By the end of the fiscal year, all States and Territories had appointed
conference chairmen and conference planning committees. Seventeen
State Conferences on Education were held during the year, with 32
scheduled between July 1 and the fall months. In addition to the state-
wide meetings about 3,800 community and county conferences and 200
regional conferences had been held or were scheduled in 27 States.
These conferences were designed to form an opportunity for the
people themselves to undertake an examination of their school needs
and to develop solutions for school problems or, when they are lack-
ing, to bring them to the attention of the States or the Federal
Government. They had already, at the close of the fiscal year, pro-
duced a quickening of interest in the problems of public education on
the part of many millions of Americans. In the final analysis, these
citizens are the ones who must determine what their schools should
accomplish and provide the means by which this can be achieved.
Gallaudet College, the world’s only college for the deaf, is a wholly
independent educational institution in Washington, D. C. Through
the Department, it receives funds appropriated by the Congress in
support of its unique educational program. Significant steps were
taken during the year to enlarge the program, broaden the curriculum,
and generally improve the physical facilities of the college.
Plans and specifications were completed for a new library building,
funds for which were appropriated by the 83d Congress. Approval
was given by Congress to a proposal calling for the construction of a
368636—56——2
10 Department of Health, Education, and Welfare, 1955
new physical activities building and a girls’ dormitory. Congress also
indicated approval of a departmental plan for the progressive rehabili-
tation of the Gallaudet building and campus.
Howard University is another independent educational institution
in the District of Columbia which is supported, in part, by Congress,
acting through the Department. Work on five new buildings was
initiated on the Howard campus during the year, as part of a program
to provide larger and more modern quarters for the university. A
new dental school building with extensive clinical facilities was also
dedicated and placed in use during the year.
The American Printing House for the Blind is an independent insti-
tution in Louisville, Kentucky, which manufactures Braille textbooks
and tangible teaching apparatus for use in schools for the blind.
Through the Department, the Printing House receives funds appro-
priated by Congress to support its program, which benefits more
than 7,000 children enrolled in residential and public school classes
for the blind.
Progress in Social Security and Public Welfare
The growing significance of the social security system in our national
life is indicated by the fact that over half the persons who are 65 years
of age or older are eligible for old-age and survivors insurance benefits.
Nine out of 10 mothers and children in this country can count on
monthly benefits in case the family breadwinner dies.
Over 714 million Americans were beneficiaries of the old-age and
survivors insurance system in June 1955. Of this total, nearly 5.5
million were retired workers and their dependents and over 2 million
were surviving dependents of deceased workers. Benefit payments
in June 1955 totaled $428 million, an increase of 45 percent since the
close of the previous fiscal year.
The 1954 Amendments to the Social Security Act, adopted by Con-
gress upon President Eisenhower’s recommendation, materially
strengthened the old-age and survivors insurance protection which is
now available to 9 out of 10 American workers and their families.
In the 1955 fiscal year, a principal task of the Social Security Admin-
istration was to make effective these improvements in the law.
The big job of changing the payment rates of some 6.6 million
beneficiaries was completed on schedule. As a result, the checks for
September 1954 were mailed on time at the new, higher rates. Over
6 million people receiving benefit payments from old-age and survivors
insurance were also advised of the new, liberalized “retirement test.”
This provision of the 1954 amendments affords greater opportunities
The Secretary’s Report ll
to retired individuals to supplement their benefits through earnings
from part-time or intermittent work.
Coverage by old-age and survivors insurance was extended rapidly
to the new groups made eligible by the 1954 amendments. Every rural
mail delivery box in the Nation received information about the eligi-
bility of farm operators and additional farm workers. Procedures
were worked out for the coverage of ministers on a voluntary basis.
By the end of the fiscal year, 44 States, 3 Territories, and 13 interstate
instrumentalities had arranged for certain of their employees to re-
ceive the protection of old-age and survivors insurance.
Special efforts were made to put the “disability freeze” provisions
of the 1954 amendments into operation as soon as possible. The dis-
ability freeze enables workers covered by old-age and survivors insur-
ance to preserve whatever eligibility for benefits they have earned up to
the time they were permanently and totally disabled. During the fiscal
year, about 400,000 potential applicants were identified, and 155,000
applied for the disability freeze of their social security benefit rights.
Procedures were also established to carry out provisions of the 1954
amendments calling for withholding of benefit payments from persons
living outside the United States and working 7 or more days per
month.
The State-Federal programs of public assistance reflected the
growth and improvement of the old-age and survivors insurance sys-
tem during the year, following enactment of these amendments.
Four groups among the needy are eligible for public assistance
payments—the aged, the blind, dependent children, and persons perm-
anently and totally disabled. Of the $2.6 billion spent for all types
of public assistance this year, 55.2 percent was from Federal funds,
36.1 percent from the States, and 8.7 percent from local sources.
For the most part, the 5.1 million persons receiving public assistance
in June 1955 are not eligible for benefits under old-age and survivors
insurance. Therefore, as more persons provide for their future security
through personal thrift and contributions to the Old-Age and Survi-
vors Insurance Trust Fund and other pension systems, there will be
fewer people needing public assistance.
In February 1951, the number of persons receiving old-age benefits
outstripped, for the first time, the number on the old-age assistance
rolls. Although the aged population has been increasing yearly by
350,000, the number of old-age assistance recipients has continued to
decline—by 34,000 in the past year—to a total of 2,549,000 at the end
of the fiscal year.
Old-age assistance—the public assistance program that serves al-
most as many needy people and costs more to maintain than the three
12 Department of Health, Education, and Welfare, 1955
a a a tie een ere ete ee
other public assistance programs combined—should decline appre-
ciably in the years ahead. About 18 percent of all people over
65 years of age were receiving public assistance this year. Because of
recent improvements in the old-age and survivors insurance program,
fewer than 16 percent of the aged are expected to need this aid by
1960.
Extension of old-age and survivors insurance coverage to more farm
workers and farm operators will be chiefly responsible for this saving
to the Nation. A majority of those now receiving old-age assistance
live in rural areas or small towns, although a minority of all Ameri-
cans 65 years of age or older live on farms or in villages. At present,
the proportion of aged persons receiving public assistance in rural
places and small towns is two-thirds higher than in metropolitan
areas.
The 1954 improvements in old-age and survivors insurance will also
help many widows and orphans who would otherwise have been de-
pendent upon public assistance. About 17 percent of the families who
now receive aid to dependent children funds are in need because of
the death of a wage earner. By 1960, this should be reduced to 10
percent.
The Children’s Bureau of the Social Security Administration has
emphasized, in recent years, improving conditions of life for infants
and preschool children. Other groups requiring special attention are
adolescents in conflict with society, children of migratory workers,
mentally retarded children, and children in unprotected adoptions.
Help was given these groups of children and others this year through
research studies, publications for parents and professional workers,
and grants to the States to support programs for maternal and child
health, crippled children, and child welfare services. A new Division
of Juvenile Delinquency Services was established to aid States and
communities working to prevent and treat this serious social malady.
The Bureau of Federal Credit Unions of the Social Security Admin-
istration was operated at no cost to the taxpayer this year. Fees col-
lected by the Bureau covered the direct costs of chartering, super-
vising, and periodically examining federally chartered credit unions,
which are voluntary associations encouraging thrift and offering
credit “for provident and productive purposes.” The number and
assets of Federal credit unions continued to increase during the year.
For the first time, total assets exceed $1 billion.
Progress in Program Development
Civil defense responsibilities of considerable importance were dele-
gated to the Department at the beginning of the fiscal year by the
Federal Civil Defense Administration, with the approval of President
The Secretary’s Report 13
Kisenhower. In general, the Department will be responsible, in the
event of attack, for control of hazards to health and the provision of
clothing and temporary financial assistance to civilians. Substantial
progress was made during the year in the assumption of these respon-
sibilities.
Assistance was provided, through the States, to local communities
to help alleviate health hazards, suffering, and hardship caused by
hurricanes and other natural disasters during 1955. This tested work-
ing relationships with Federal Civil Defense Administration regional
offices and with State agencies in the utilization of Federal resources
to cope with disaster.
Significant research progress was made by the Public Health Serv-
ice and the Food and Drug Administration in studying health and
sanitation problems related solely to civil defense. A sizable buildup
of the Public Health Service Reserve Corps was begun, and arrange-
ments were made for specialized civil defense training for its members.
For State and local food and drug officials, a civil defense training
course was developed which will ultimately reach 50 strategic areas
and an estimated 1,000 officials.
Stimulation of civil defense interest on the part of State health
departments and voluntary medical and health groups resulted from
a series of regional conferences and seminars, with all States repre-
sented. Representatives of all State welfare departments met in a
series of regional conferences to develop plans for emergency financial
and clothing assistance to victims of an attack. “Pilot centers” were
organized in selected States to prepare civil defense teaching materials
for use in the schools.
The Department also participated in two governmentwide test
exercises involving relocation of staff and the continuity of essential
headquarters functions outside of Washington. The first of these, in
November 1954, involved only the headquarters relocation plan. The
June 1955 exercise, “Operation Alert,” required extensive activities
by both headquarters and regional office staff.
Surplus Federal property is donated, through the Department, for
public and private health and educational uses. During the 1955
fiscal year, surplus personal property with an original acquisition
value of $132.2 million was allocated to the States for distribution.
Transfer of real property was made to 225 institutions, which thereby
acquired 1,521 acres of land and 669 buildings, valued at $16.2 million.
Legislation enacted near the close of the fiscal year assures that
millions of dollars worth of useful Federal surplus property will
continue to benefit health and educational activities in the States. The
new statute also improves the operation of this program, especially
by enabling the States to assist in its administration,
14 Department of Health, Education, and Welfare, 1955
i AP ee ea othe tr GA Th Ra
The Committee on Aging of the Department coordinates activities
related to the great increase in the numbers and proportion of older
people that has characterized America in recent years.
Recognizing that the rapidly growing number of aged persons in
the population poses new challenges of great significance to the Nation
in social and family responsibility, in health, education, employment,
and income maintenance, the Secretary of Health, Education, and
Welfare initiated a study of the Department’s Committee on Aging
during the fiscal year. In June 1955, a departmental order designated
an Assistant Secretary to head a reorganized committee made up of
the heads of the Department’s constituent agencies to advise the Sec-
retary, develop programs of departmental action, and to serve as a
clearinghouse for information and aid the States, local communities,
and voluntary organizations in programs for the benefit of the Nation’s
senior citizens.
During the year, the Committee issued a pamphlet entitled “A ging—
A Community Responsibility and Opportunity,” completed a revision
of its 500-item “Selected References on Aging,” and commenced a new
“Fact-Book on Aging,” an “Inventory of Official State Groups in
Aging,” and “An Inventory of Federal Programs and Activities in
Aging.”
The Committee also maintained its extensive program of public
information and consultation with foundations, organizations, and
State and local governments. The Department was a cosponsor of
the eighth annual Conference on Aging of the University of Michigan.
One of the most significant developments was the initiation by the
Department of an approach toward closer coordination of the activities
of all Federal departments in the field of aging. A plan was presented
to the sub-Cabinet by the Department for the organization of an Inter-
Departmental Working Group on Aging, and approval was obtained.
At the invitation of the Secretary, 10 departments and agencies desig-
nated representatives to the Working Group. The first two meetings
were held at the Department, on June 10 and July 15. The initiation
of the Working Group quickly demonstrated the interrelationship of
Federal programs and the need for closer coordination. Plans were
commenced for placing the Working Group on a more formalized and
permanent basis.
International Activities—*In the four quarters of the globe, who
reads an American book? Or goes to an American play? Or looks
at an American picture or statue?” Such was, in 1820, Sydney Smith’s
now-famous criticism of the United States. He continued by inquiring
derisively, “What does the world yet owe to American physicians and
surgeons? What new substances have their chemists discovered 2”
The Secretary’s Report 15
Since Smith asked his questions, the world has come to respect, not
only American writing and art but American education, science, and
medicine as well. Every year thousands of people from many lands,
experts and students alike, journey to the United States to study
developments in health, education, and social welfare. This Depart-
ment is proud to be one of their principal “ports of call.”
This year, for example, the Department supervised the programs
of study and training of 174 United Nations Fellows. In all, some
3,464 foreign visitors received training planned or supervised by the
Department. In addition, about 400 American technicians in health,
education, and social welfare were recruited for foreign assignments
with the International Cooperation Administration. Technical assist-
ance missions in 88 free nations were aided in this manner.
Interdeparimental Activities—Two matters of interdepartmental
concern that should be recorded occurred during the year. One was
the participation by the Department in a study made by the Depart-
ment of Agriculture and the Department of Commerce on the problems
of low-income farm families. The report of the Secretary of Agri-
culture, which contained summaries of work of the committees of the
three participating departments, was published in early June 1955.
It pointed out that the joint study provides an excellent base for the
development of specific plans for definitive action to deal effectively
with the difficulties encountered by low-income farm families.
The other was the establishment of the President’s Committee on
Migratory Labor. The Committee included the Secretary of Labor,
as chairman; the Secretary of Agriculture; the Secretary of the
Interior; the Administrator of the Housing and Home Finance
Agency; and the Secretary of Health, Education, and Welfare.
The formation of this Committee constituted a first step toward
considering and dealing with the problem of migrant labor—a prob-
lem that for 50 years had been under study and investigation but had
failed to command the continuing attention of the Federal Gov-
ernment.
During this year the Department also participated actively in the
work of the Commission on Intergovernmental Relations—the
Kestnbaum Commission. The Commission gave special attention to
the various grant-in-ald programs, and the Department prepared
extensive analyses of its activities for the use of the Commission and
reviewed and commented upon the Commission’s proposals and rec-
ommendations. It is gratifying to note that after such thorough
study the Commission found relatively little wrong with the Depart-
ment’s programs. Most of the Commission’s recommendations were
16 Department of Health, Education, and Welfare, 1955
iON CIO Se eke eto lie, Mente Ace Mito ti
in accord with views of this Department. The report of the Com-
mission should go far toward promoting a better understanding of
the Department’s work and its relationship to the several States.
Progress in Management
Of the important and far-reaching proposals for government re-
organization proposed by the Hoover Commission, 18 were applicable
to the work of the Department of Health, Education, and Welfare
without any further action required by other agencies of government
or Congress. At the close of the fiscal year these proposals were under
careful study by the Department.
Congress appropriated $2.1 billion to the Department during this
fiscal year, for all purposes. In addition, receipts of the Old-Age and
Survivors Insurance Trust Fund totaled nearly $5.6 billion and dis-
bursements totaled nearly $4.5 billion. Of the funds appropriated
by Congress, 89 percent was distributed to States, communities, insti-
tutions, and individuals, in the form of grants, scholarships, trainee-
ships, etc.
At the end of the fiscal year, the Department had 39,927 full-time
employees working in its offices, hospitals, and laboratories through-
out the Nation and overseas. Nine regional offices coordinated activi-
ties throughout the Nation.
An organization of such size, dealing with complex matters vital
to the well-being of every citizen, requires the best possible structure
and management. More efficient, effective, and economical operations
were constant goals of the Department during the 1955 fiscal year.
The first comprehensive and long-range study of the Department’s
managerial responsibilities was made this year by the consulting firm
of Cresap, McCormick & Paget. The Office of the Comptroller was
established to give increased attention on behalf of the Secretary to
all budgetary and fiscal matters. The Office of Administration was
reorganized to provide more effective guidance to the units of the
Department with respect to such problems as organization, work
planning, and executive development.
In addition to the special surveys and reorganizations described
elsewhere in this report, inventories were made of real and personal
property for which the Department is responsible and a survey was
completed of the procedures for auditing the Department’s grants-in-
aid to the States. A Departmental Staff Manual on Physical Security
was issued, containing detailed information concerning the Depart-
ment’s physical security program, policies, and procedures.
The Secretary’s Report 17
Net increases in staff were necessary only at the National Institutes
of Health and the Bureau of Old-Age and Survivors Insurance, in
both cases because of new legislation involving major expansions of
program.
During the year, cash awards totaling $14,250 were made to 350
employees who suggested better ways of doing the Department’s job.
Estimated savings as a result of employees’ suggestions amounted to
$119,998, and most of these savings will recur annually. There were
also many improvements not measurable in dollars that were rewarded
by cash awards.
Illustrative economies made in the course of the Department’s opera-
tions this year include:
1. Installation of an electronic data processing system in the Bureau
of Old-Age and Survivors Insurance which will cut costs by more
than $1 million annually.
2. Freeing 9,775 pieces of office equipment, valued at $651,160, for
reuse elsewhere in the Government.
3. Turning in an estimated $41,855 to the Treasury from the sale of
useless records as waste paper.
4, A host of reductions in the volume of paperwork. For example,
the variety of postcards used by the States to report morbidity data
to the Public Health Service was cut from 82 to 5.
From the standpoint of the general management of the Department,
as distinguished from individual problems associated with specific
programs, perhaps the major concern is with the important and con-
tinuing task of welding together the many programs of the new
Department into an operating whole. The job remained complicated
because of the width and the breadth of programs which fall within
the Department’s responsibilities. These programs cover a spectrum
as broad as the human needs—and, indeed, the human aspirations—of
the many millions of Americans who every day, in one way or another,
are touched by the work of the Department of Health, Education, and
Welfare. Although much, certainly, remained at the end of the year
to be accomplished—as will, indeed, always be true in a changing and
dynamic society—it can be recorded that substantial progress was
made in the endeavor to give coherence and unity to the management
of the Department and to enhance the effectiveness of its work on
behalf of the American people.
18
Department of Health, Education, and Welfare, 1955
Table 1.—Grants to States: Total grants under all Department of Health,
Education, and Welfare programs, fiscal year 1955
[On checks-issued basis]
States, territories, and
possessions
IVITCHIG ae ene eee ee
WhnnesO basa anes ce ee
IVEISSISSIP Dilsee- =e ee ee
WiissOUTIaeS Se ee
New Hampshire________-_-
INeweJersey: S22. -2 2. be S
ING WVECXICOS: =e Se
Oregon we ee ee
Pennsylvania. so-=- Sesesee
mhodevlsiand= ss ae a
WVMIToinia 8 oe ooe spe ee
Washing fone ap aaa
IWeSE VIESINIg. oe ee
Wisconsin
Wyoming
Puerto: Ricdssss4oece2
Virgin Islands 3es4. 5
Total
38, 356, 842
13, 246, 513
27, 948, 611
210, 869, 101
33, 010, 492
16, 149, 786
2, 646, 810
5, 345, 213
43, 826, 138
60, 354, 768
7, 283, 258
70, 379, 066
25, 185, 941
24, 765, 357
27, 003, 359
35, 203, 446
70, 374, 839
10, 998, 702
22, 127, 419
59, 835, 200
56, 737, 364
29, 599, 000
29, 889, 972
80, 435, 684
7, 967, 021
12, 142, 029
3, 486, 068
4, 983, 124
20, 214, 949
16, 326, 560
122, 150, 966
38, 955, 322
5, 763, 692
69, 394, 706
60, 819, 349
15, 016, 891
64, 408, 586
9, 146, 890
26, 160, 352
8, 423, 508
43, 036, 435
112, 996, 222
10, 750, 643
4, 184, 213
33, 109, 068
46, 899, 718
24, 429, 637
27, 069, 713
8, 421, 551
5, 407, 596
7, 553, 148
9, 403, 904
429, 258
Social
Security
Administra-
tion
$1, 815, 694, 000 |$1, 455, 855, 874
30, 321, 541
9, 572, 158
22, 598, 593
162, 032, 415
27, 242) 618
11, 747, 820
1, 604, 620
4, 521, 103
35, 430, 301
46, 625, 370
5, 325, 806
61, 098, 586
20, 147, 518
21, 756, 514
19, 141, 309
30, 011, 463
65, 212, 221
8, 307, 190
11, 309, 808
54, 860, 594
45, 701, 864
26, 185, 285
25, 090, 656
73, 911, 717
6, 240, 097
9, 216, 839
1, 355, 645
3, 605, 768
14, 283, 426
10, 277, 772
108, 542, 388
32, 539, 509
4, 888, 609
54, 903, 083
50, 607, 348
12, 669, 806
53, 078, 951
6, 912, 220
19, 968, 776
6, 519, 319
36, 234, 880
90, 600, 452
7, 135, 395
3, 654, 470
12, 191, 817
32, 524, 184
21, 724, 769
22, 902, 013
2, 425, 318
1, 814, 678
3, 921, 982
5, 008, 581
355, 709
Public
Health
Service
Office of
Office of | American
Vocational | Printing
Education | Rehabili-
tation
$95, 048, 735 |$238,974,453 |$25, 599, 938
—_} | | — —— |
2, 923, 962
374, 108
2, 399, 141
4, 409, 545
966, 097
514, 193
504, 421
320, 225
2, 385, 047
4, 222) 608
426, 172
2, 950, 476
1, 644, 409
1, 495, 118
1, 294, 301
2, 582, 215
2, 506, 024
794, 220
1, 306, 211
2, 681, 601
2, 663, 826
1, 270, 068
2, 598, 521
2, 045, 651
306, 966
912, 589
327, 121
623, 840
1, 918, 751
629, 736
4,018, 911
2, 942, 336
200, 825
4, 691, 042
1, 890, 892
523, 747
5, 565, 047
190, 108
2, 815, 726
451, 079
2, 904, 300
6, 036, 172
667, 885
91, 376
2, 305, 932
1, 562, 587
1, 472, 487
2) 148, 715
304, 852
221, 195
568, 194
3, 441, 707
36, 457
4, 417, 953
3, 148, 719
2, 509, 425
42, 573, 053
4, 600, 514
3, 536, 341
369, 509
110, 139
5, 186, 416
7, 953, 966
1, 455, 968
5, 048, 707
7, 277, 073
1, 788, 762
1, 778, 164
3, 865, 391
1, 272, 253
1, 778, 760
1, 777, 956
695, 289
3, 508, 970
5, 287, 021
7, 869, 339
2, 538, 487
564, 726
9, 245, 196
7, 789, 277
1, 470, 870
3, 859, 025
1, 923, 278
2, 909, 521
1, 350, 150
3, 217, 645
15, 179, 437
2, 816, 026
336, 579
18, 027, 649
12, 300, 913
652, 907
1, 445, 491
675, 054
3, 326, 368
2, 895, 897
673, 956
37, 092
687, 890
150, 123
437, 238
1, 840, 255
199, 034
348, 501
167, 924
392, 616
819, 244
1, 547, 175
1, 084, 372
350, 030
418, 692
608, 345
147, 033
232, 528
25, 346
58, 227
496, 840
129, 802
1, 702, 678
924, 364
108, 524
545, 400
529, 175
349, 934
1, 891, 364
121, 284
463, 367
101, 739
674, 999
1, 171, 733
130, 146
101, 788
578, 113
509, 744
576, 451
568, 028
86, 327
House
for the
Blind
$215, 000
Social Security
Administration
Social Security in 1955
As THE FISCAL YEAR ended, the twentieth anniversary of the Social
Security Act was drawing near. Appropriately, this year’s report
takes stock of the achievements of the past 12 months against a back-
ground of two decades of progress.
The last year has been one of the most significant, in many respects,
in bringing the old-age and survivors insurance program within sight
of its goal. Asa result of the 1954 amendments, signed by President
Eisenhower on September 1, about 9 out of 10 of the Nation’s jobs are
now within the coverage provisions of the contributory plan to main-
tain income after retirement or death. Nine-tenths of the young moth-
ers and children in the country have survivorship protection that
would assure them of monthly benefits if the breadwinner were to die
today.
The basic social insurance program has made long strides since it
first provided old-age benefits for industrial and commercial workers.
The expanded program of broad coverage, protecting against the risk
of wage loss resulting from the death as well as from the old age
of the worker, is still far from mature. No one has yet been under
the program for a full working lifetime nor will the beneficiary rolls
reach their full growth until practically everyone who works for a liv-
ing has had an opportunity to gain protection. Significantly, how-
ever, the 1954 amendments, by achieving almost universal coverage
and other desirable modifications of old-age and survivors insurance,
provide the assurance of future protection for all segments of the
economy.
When the Social Security Act was formulated 20 years ago, there
was clear recognition of the continuing need for public assistance as
well as social insurance. The Committee on Economic Security, in
i9
20 Department of Health, Education, and Welfare, 1955
suggesting a dual attack on the insecurity of old age, stated : “An old-
age insurance program could be expected in time to carry the major,
but never the entire, load. . . . Assistance programs have a definite
place, even in the long-time planning for old-age security.”
Since February 1951, the social insurance program can be said to
be carrying “the major load.” In that month, the number of aged
drawing old-age and survivors insurance benefits passed 2.8 million,
exceeding slightly for the first time the number on old-age assistance.
At the beginning of the 1955 fiscal year, the 5.1 million aged bene-
ficiaries receiving insurance benefits was almost double the assistance
load. At the close of the fiscal year, 6.1 million aged persons drew —
insurance benefits and 2.5 million assistance payments, a ratio
approaching 21% to 1.
The number of recipients of old-age assistance has declined since
the autumn of 1950, ranging between 2.5 million and 2.6 million in the
past 2 years. In relation to our growing aged population, the decline
has been impressive. And increasingly as the old-age and survivors
insurance program has reached more of the aged group, the public
assistance program has served as a backstop for individuals whose
insurance benefits are inadequate for their needs, either because of low
benefits due to low or irregularly covered wages or because of special
needs such as medical care.
The growth of insurance protection for the aged over the past
20 years and the increasingly supplementary character of public
assistance is illustrated in chart 1. In December 1934, only about
5 percent of the aged received payments under the social insurance
and related programs then in existence—public employees’ retirement
systems and veterans’ pension and compensation programs. Another
5 percent received public assistance including work relief. Just over
one-fourth were earners or the wives of earners. Perhaps 1 out of
every 2 persons aged 65 and over was mainly or wholly dependent on
relatives and friends for support.
In contrast, at the end of 1954 all but 15 percent of the aged had
income from employment, social insurance and related programs,
and/or public assistance. Social insurance has made the major con-
tribution in improving the income situation of the aged. Almost half
the aged population in December 1954 was actually receiving pay-
ments under social insurance and related programs. Old-age and
survivors insurance alone was then paying benefits to some 5.3 million
while an additional 1.4 million aged workers (of whom from 300,000
to 400,000 had aged wives) were insured and could have received
benefits if they had retired. Together these groups aggregated 7
million or one-half of all aged. Public assistance provided the prin-
cipal support for more than 2 million aged persons and supplemented
old-age and survivors insurance payments for another half million.
Social Security Administration 21
Chart 1.—ESTIMATED PERCENT OF AGED PERSONS WITH MONEY INCOME FROM EMPLOY-
MENT, SOCIAL INSURANCE, AND PUBLIC ASSISTANCE, DECEMBER OF SELECTED YEARS,
1934-54
PERCENT
30
ALL PERSONS
AGED 65 & OVER
MILLIONS
15
40
od WIVES OF
1 EARNERS
30 ee 1934 39 44 49°54
ieee ieee SUPPLEMENTARY
eB eS ro Ons
ieee esas
KS renece
es es : ma
20 : oo gh
| EARNERS
SSS. UME
th a A ; i By ee
1934 ‘39 44 49 '54 1934’°39 44 49°54 1934 °39 44 "49 '54
EMPLOYMENT_ SOCIAL INSURANCE, PUBLIC ASSISTANCE
RELATED PROGRAMS 2/
1 Includes persons with casual employment whose main support was from other sources.
2 Old-age and survivors insurance, railroad and public employees’ retirement, and veterans’ pension
and compensation programs.
3 Excludes persons supported by public institutions. Includes persons on work relief projects in
the 1930's.
In December 1954, the proportion of persons with some earnings from
employment was at about the same level as 20 years earlier, a decline
from the significantly higher levels of the war years.
The effect of the 1954 amendments in greatly strengthening the
gains of the last two decades will be evident even within the next
few years. By 1960, the proportion of the aged population who either
are receiving insurance benefits or could receive benefits on retire-
ment from gainful employment will have risen from one-half to
about two-thirds.
Provisions to improve the economic security of children have also
been greatly strengthened in the past 20 years. Because the original
Social Security Act did not include survivors insurance, the full bur-
_____ Department of Health, Education, and Welfare, 1955
den of income support for children in need due to the death of the
father was placed on the program of aid to dependent children.
Assistance payments under the Federal-State program were first
made by the States in February 1936. By the end of that year, some
985,000 needy children deprived of support by reason of the parent’s
death, absence, or incapacity were receiving these payments and an
additional 119,000 were receiving payments under State and local
programs. Five years after the adoption of the Social Security
Act all but a few States were administering their aid to dependent
children programs with Federal financial participation. Of the case
load of 854,000 children in August 1940, fewer than 5 percent were
receiving payments financed exclusively by State and local funds.
Survivor benefits under the old-age and survivors insurance pro-
gram were first payable in 1940 and were awarded to some 50,000
child survivors during the first year. Insured status for survivor
benefits could be acquired after relatively short periods of covered
employment. Hence the insurance program quickly assumed the
major role in caring for the Nation’s fatherless children—a diminish-
ing group dropping from about 2.8 million at the end of 1934 to about
1.9 million 20 years later.
In December 1954, just over one million children were receiving
benefits under old-age and survivors insurance because of the death
of the father and another 40,000 because of the death of the mother.
Some 240,000 needy children received aid to dependent children be-
cause of the father’s death. With the drop in the total number of
orphans and with social insurance payments reaching an increasing
proportion of them, fatherless children have made up a decreasing
part of the caseload of the aid to dependent children program. Of
the total caseload of 1.6 million children at the end of 1954, about
85 percent had been deprived of normal support, not by death of the
father but because of the continued absence from home or the incapac-
ity of either parent.
Altogether, about 3.3 million children received financial support in
December 1954 under a public income-maintenance program—includ-
ing programs of the Veterans Administration but not including chil-
dren in families receiving unemployment or disability insurance.
Many of the children receiving income support under public pro-
grams, as well as hundreds of thousands of others, have benefited under
the Social Security Act provisions for services for maternal and child
health, child welfare, and crippled children. The contributions of
these programs over the last 20 years in improving the well-being of
children and in saving the lives of infants and their mothers have been
immeasurably great. Had the mortality rates of two decades ago not
been improved, 24,000 mothers would lose their lives in child birth
this year—twelve times as many lost lives as the 2,000 which are
expected under present-day rates.
Social Security Administration 23
In carrying forward the gains for the Nation’s younger generation,
the Children’s Bureau gave special attention in 1955 to the problems
of four particular groups of children. A coordinated approach to
problems of delinquent children was facilitated by the creation, early
_ in the fiscal year, of a Division of Juvenile Delinquency Service. The
other groups which received Bureau emphasis were children of migra-
tory workers, mentally retarded children, and children in unprotected
adoptions.
Other programs of the Social Security Administration—not all of
which are 20 years old—made further contributions during the year
to family security. The Federal-State program of aid to the perma-
nently and totally disabled, established under the 1950 amendments,
was aiding 236,800 persons in 43 States at the end of the fiscal year.
The increase of more than 10 percent over the number of recipients in
June 1954 reflected the relatively recent introduction of the program
in some of these States. Aid to the blind, included in the original
Social Security Act, went to 104,000 persons in June 1955, about
3,000 more than a year earlier.
The program of Federal credit unions, too, has a role in increasing
family security. Credit unions promote systematic savings and use
the funds thus accumulated for consumer loans at reasonable rates of
interest. During the fiscal year 1955—marked by the twenty-first
birthday of the program of federally chartered credit unions—the con-
tinued growth of these credit unions brought their aggregate assets
above $1 billion.
Program Administration in 1955
Implementation of the 1954 amendments was accomplished smoothly
and speedily. Over 614 million old-age and survivors insurance bene-
fit checks were recomputed at new rates and released in October, the
month following the signing of the amendments. For the Bureau of
Old-Age and Survivors Insurance, the first half of the fiscal year saw
emphasis on public information activities and on preparation for the
new coverage and other provisions which became effective on January
1, 1955.
The 1954 amendments to preserve rights to old-age and survivors
insurance benefits in the event of disability resulted in a new and major
work load. A Medical Advisory Committee was established to advise
on the medical policies and standards needed in implementing the new
provisions. By the end of the fiscal year, agreements for the admin-
istration of the disability freeze had been negotiated in almost all
States, and a total of 143,000 freeze applications had been taken. The
increase in benefit amounts resulting from the disability freeze pro-
visions was about to come into effect as the fiscal year closed, and much
work had been done toward completing determinations of disability
24. Department of Health, Education, and Welfare, 1955
for individuals who were aged 65 or over and therefore potentially
eligible for immediate increases.
Early in the fiscal year, arrangements were completed to implement
1954 legislation transferring to the Bureau of Federal Credit Unions
the supervision and examination of credit unions chartered by the
District of Columbia. This was the second year in which this Bu-
reau’s operations were financed entirely by fees collected from the
credit unions.
A total of 18,514 employees, the vast majority of whom were in
district, area, and regional offices, were on the payroll of the Social
Security Administration at the end of June. The staff had been
increased by about 4,000 over the previous year’s total to meet the
demands of the expanded and growing program.
Through participation in international meetings and similar inter-
national activities relating to social security, the Social Security
Administration added to its own knowledge and insight while con-
tributing its experience to other countries.
The high point of the year’s international social welfare activity was
the Tenth Session of the United Nations Social Commission, held in
New York in May, with the Commissioner of Social Security serving
as principal adviser to the United States member of the Commission.
The Interdepartmental Committee on International Social Welfare
Policy, chaired by the Director of the Bureau of Public Assistance,
had given major attention to preparation for the session of the Social
Commission. Through this Interdepartmental Committee and
through the Interdepartmental Labor Policy Committee, staff mem-
bers participated in the consideration of important social welfare items
coming before the United Nations, its various organs, the International
Labor Organization, and the Inter-American organizations, and de-
veloped policy statements for the consideration of the Department of
State.
The Chief of the Children’s Bureau continued to serve as United
States Representative to the United Nations International Children’s
Fund and attended the World Health Assembly in Mexico City.
Other international meetings in which staff members participated
included the Tenth Pan American Child Congress in Panama City, the
Fifth Inter-American Conference on Social Security in Caracas, and
the Fifth International Congress on Mental Health in Toronto. An-
other important phase of the Social Security Administration’s inter-
national activities was its active cooperation with national agencies,
committees, and conferences.
There was a slight increase in technical missions for which the Social
Security Administration recruits and nominates qualified personnel
in social welfare, social insurance, child health, and credit cooperatives
under an agreement with the Foreign Operations Administration
Social Security Administration 25
(now International Cooperation Administration). During the year,
23 specialists were on duty in 12 countries.
Nearly twice as many persons from foreign countries as last year
requested training in the establishment of social security systems fol-
lowing recent legislation, in management of credit unions, in manage-
ment of institutions and welfare agencies, and in staff and personnel
development to meet new agency requirements. ‘There was a marked
increase in the numbers studying technical aspects of maternal and
child health. A total of 714 visitors from some 50 countries came
to the Social Security Administration for planning and training in
various fields. Of these, 127 were long-term trainees under the
auspices of the United Nations, the World Health Organization, or
FOA.
During the year there was major movement forward on the aspects
of civilian defense for which the Social Security Administration
would have planning or administrative responsibility. The program
administered by the Social Security Administration under normal
conditions was analyzed and those functions which would be essential
in time of major emergency were identified and reported through the
Department to the Office of Defense Mobilization. Participation in
the two “Exercises” under the direction of ODM and the Federal
Civilian Defense Administration afforded opportunity to evaluate the
program activities so identified and to make further progress in the
development of plans related to relocation, protection of essential rec-
ords, and other administrative aspects of defense planning.
During the year the Secretary assigned to the Social Security
Administration two of the programs delegated to the Department by
FCDA: emergency financial assistance and emergency clothing for
civilians. These were assigned by the Commissioner to the Bureau
of Public Assistance for administration.
Participation in Operations Alert by all Bureaus and the Commis-
sioner’s Office tested not only the continuity of essential functions
under emergency conditions but also the initial plans developed for
the administration of the delegations. The Social Security Adminis-
tration has participated in the analysis and planning preliminary to
the development of other defense plans of the Department related to
the fields of income maintenance and welfare services.
Old-Age and Survivors Insurance
The 1954 amendments in the old-age and survivors insurance pro-
gram, added to those made in 1950 and 1952, have equipped the
program to perform its functions well. It now provides protection
for almost all American families against the loss of the earnings they
3868636—56——3
26 Department of Health, Education, and Welfare, 1955
alc he TA le Naa NE
depend on for their support when that loss is caused by retirement
or death of the family earner. And, for several reasons, the protec-
tion it provides will be more nearly adequate in the future than it
has been up to now.
First, the coverage of the program has been made very nearly uni-
versal; this means not only that more people are protected under the
program but also that those who move from one kind of work to
another have all their earnings covered, rather than only a part.
Before 1951 major areas of work were outside of the coverage of the
program—work in agriculture and domestic service, farm and non-
farm self-employment, and employment for Federal, State, and local
governments and for nonprofit organizations. The only major areas
that still remain excluded are Federal employment already under a
retirement system, members of the Armed Forces (whose present
temporary coverage expires March 31, 1956), and self-employment in
certain professions. Of particular importance is the extension of
coverage to both self-employment and wage employment in agricul-
ture that was accomplished by the 1950 and 1954 amendments.
Second, the “new start” adopted in 1950 will increase the benefit
amounts of those coming on the rolls in the future. Under this pro-
vision most retired workers will have their benefits based only on
earnings after 1950; the relatively low wages of the late thirties and
forties therefore will not operate to depress their average monthly
wages and benefit amounts.
Third, the provision for the “drop-out” adopted in 1954, under
which as many as 5 years of low earnings may be disregarded in
determining the average monthly wage, will improve benefit amounts.
Jt will permit the exclusion of periods of temporary unemployment,
apprentice earnings, or “tapering off” toward retirement, so that an
individual who by and large has worked throughout his life may
receive benefits based on an average at or not far below that of his full-
time earnings.
Fourth, the provision adopted in 1954 for “freezing” the benefit
rights of workers who become totally disabled will mean that such
workers, if they have been substantially attached to the work force
before incurring their disabilities, will have their insured status
preserved and will be able to receive full-rate benefits when they reach
retirement age.
The effect of all these changes will be that the program will pay
higher benefits in the future to individuals who have worked through-
out their adult lives and supported themselves and their families but
who have had gaps in their earnings records because of noncovered
jobs, unemployment, or disability, or who under prior law would have
had periods of low earnings counted against them.
Social Security Administration 27
An additional reason why protection will be more adequate in the
future is that the benefit formula itself has been revised to pay a
benefit which is a higher proportion of previous earnings and the
amount of earnings that is creditable annually under the program has
been increased. Finally, the retirement test of the program has been
improved to apply more equitably to beneficiaries regardless of the
kind of work they do and to make it possible for beneficiaries to engage
in more part-time and seasonal work without forfeiting benefits.
The sections that follow describe the contribution that the revised
old-age and survivors insurance program is making to the security
of the Nation’s families and how that revised program has been put
into effect.
What the Program Is Doing
The following summary of significant statistical indices gives a
brief picture of the program in 1955. Neither the figures on bene-
ficiaries and benefit amounts nor those on the protection provided
by the program reflect the improvements brought about by the dis-
ability freeze, since increased benefits resulting from the freeze were
not payable until the beginning of the 1956 fiscal year. Preliminary
figures on the substantive effect of the freeze are presented in the
section describing its administration.
BENEFICIARIES AND BENEFIT AMOUNTS
In June 1955 about 7.6 million people were receiving monthly bene-
fits under the program. Some 6.1 million of these beneficiaries were
aged 65 and over—4.2 million of them retired workers and 1.8 million
the wives and dependent husbands of retired workers and the widows,
dependent widowers, and dependent parents of workers who had died.
Of the remaining 1.5 million, some 300,000 were mothers and 1.2
million were children.
In June 1955, the average insurance benefit paid to a retired worker
who had no dependents also receiving benefits was $58.20 a month.
When the worker and his wife both received benefits, the average for
the family was $102.20. Families consisting of a widowed mother and
two children received, on the average, $132.30.
The benefit awards for persons now coming on the rolls for the first
time are considerably higher than those given above for all bene-
ficiaries. The higher amounts reflect the more liberal computation
provisions of the 1954 amendments, under which up to 5 years of low
earnings may be dropped from the computation of the average
monthly wage. Among beneficiaries who had come on the rolls by
28 Department of Health, Education, and Welfare, 1955
June 1955 and whose benefits are based on earnings after 1950 with
eligibility to omit years of lowest earnings, the average for a retired
worker with no dependents receiving benefits was about $78, for an
aged couple about $130, and for a widowed mother and two children
approximately $182.
THE PROTECTION PROVIDED
Of the almost 14 million people aged 65 or over in the United States
in December 1954, 51 percent were eligible for benefits under old-age
and survivors insurance; 38 percent were actually receiving them.
The percentage of aged persons who are eligible is expected to rise to
65 percent by 1960.
Of the population under 65 years of age, 65 million were insured at
the beginning of the calendar year 1955. Some 24 million of these
people were permanently insured—that is, whether or not they con-
tinue to work in covered jobs they will be eligible for benefits at age 65
and their families are assured of protection in the event of their death.
An additional 41 million were insured but would have to continue in
covered work for an additional period to make their insured status
permanent. Nine out of 10 of the mothers and young children in the
Nation were assured that they would receive monthly benefits in case
of the death of the family earner.
THE COVERAGE OF THE PROGRAM
About 6714 million people will have contributed toward old-age and
survivors insurance during calendar year 1955. An estimated addi-
tional 114 million people will have been afforded insurance protection
jointly by the railroad retirement and old-age and survivors insurance
programs. In June 1955, about 91 percent of all jobs in paid civilian
employment were covered by the program or were eligible for cover-
age. An additional 3 percent of the Nation’s paid civilian jobs, not
covered by old-age and survivors insurance, were covered by Federal,
State, or local government retirement systems. The residual group,
comprising about 6 percent of the Nation’s paid civilian employment,
was not covered under any public retirement program. This group
consisted mostly of self-employed persons whose annual net earnings
were less than $400, certain self-employed professional people, and
domestic and farm workers who did not earn sufficient wages from any
one employer to meet the minimum coverage requirements of the law.
Members of the Armed Forces, while not covered by old-age and
survivors insurance on a contributory basis, are granted wage credits
of $160 for each month of active service after September 15, 1940,
and before April 1, 1956.
Social Security Administration 29
INCOME AND DISBURSEMENTS
Program expenditures during the fiscal year totaled $4,436 million,
of which $4,333 million was for benefit payments and $103 million
for administrative expenses. Total receipts were $5,534 million, in-
cluding $5,087 million in net contributions, $438 million in interest on
investments, and $10 million in transfers from the railroad retirement
account. Receipts exceeded disbursements by $1,098 million, the
amount of the increase in the trust fund during the year. At the end
of June 1955, the fund totaled $21.1 billion.
On June 20, all assets of the fund, except $560 million held in cash,
were invested in United States Government securities as required by
law ; $2.3 billion were invested in public issues (identical with similar
bonds owned by private investors), and $18.2 billion were invested in
special certificates of indebtedness bearing interest at the average rate
paid on the total interest-bearing Federal debt at the time they were
issued. The average interest rate on all investments of the trust fund
at the end of the fiscal year was about 2.3 percent.
Administering the Program
EFFECTUATING THE 1954 AMENDMENTS
Immediately after enactment of the amendments, recruitment objec-
tives were established for each part of the Bureau; these objectives
were related to anticipated loads, the ability to recruit qualified per-
sonnel, and the rate at which new staff could be successfully trained
and absorbed. The net personnel increase required by the 1954 amend-
ments was approximately 3,400. This brought Bureau staff at the
end of the fiscal year to just over 17,600 employees—the staff needed
for operations at the new and continuing workload level at which the
Bureau will operate.
Training on the amendment provisions and on new policies and
_ procedures was essential for both experienced and new personnel. One
device followed was to train groups of key supervisory and technical
people, who then carried the new knowledge back through the super-
visory line and to all parts of the country to people already on the
Bureau’s staff. Central office training classes were established in
Baltimore for new employees. More than 1,200 new field employees
received intensive instruction in these courses during the fiscal year.
One of the first tasks required by the amendments was the conver-
sion of the monthly benefit checks of over 6.5 million beneficiaries to
the new higher amounts. This operation was completed in time to
permit release of the September checks when they were due. This
was accomplished through timely procedural planning and testing,
30 Department of Health, Education, and Welfare, 1955
the maximum use of mechanical methods for the actual conversion,
and close synchronization of operations with those in the ‘Treasury
Department’s disbursing offices.
The burden of administration stemming from the amendments was
greatest during the period from January 1, 1955, to the end of the
fiscal year. In the first 3 months of 1955, over 100,000 more claims
applications were received than in the first 8 months of 1954. Because
this influx of claims was concentrated in such a short period of time,
pending loads in the district offices rose to unprecedented levels. By
June 30, 1955, substantial inroads had been made in this backlog, but
the district office pending load was still high.
ADMINISTERING THE DISABILITY “FREEZE”’’
Under the new disability “freeze” provision, persons having both
substantial and recent covered work prior to disablement are eligible
to have their insurance rights frozen during the period in which long-
continuing total disability prevents them from performing any sub-
stantial gainful work. Adoption of the disability freeze provision
not only created an entirely new area of program administration for
the Bureau, but also, for the first time, provided for Federal-State
administration of a phase of the old-age and survivors insurance pro-
gram. The law directs the Secretary of Health, Education, and Wel-
fare to enter into agreements with vocational rehabilitation agencies
or other appropriate State agencies to make determinations of disa-
bility for freeze purposes.
A new division in the Bureau of Old-Age and Survivors Insurance—
the Division of Disability Operations—was assigned primary respon-
sibility for making determinations in cases not covered by State agree-
ments and for reviewing certain disability determinations made by
State agencies. The Division received substantial help in the develop-
ment of policies and procedures from a committee appointed by the
State Vocational Rehabilitation Council, from constituents in the De-
partment—particularly from the Office of Vocational Rehabilitation—
and from other departments and agencies. ‘To assist in the develop-
ment of medical standards and policies, a Medical Advisory Commit-
tee to the Social Security Administration was appointed. This Com-
mittee, composed of members of the medical and related professions
having a common interest in the problems of the disabled, provided
consultation on medical policies involved in making disability deter-
minations and technical advice on the formulation of medical guides
and standards. The Medical Advisory Committee is expected to con-
tinue beyond this initial year of operations to evaluate the medical
aspects of the administration of the freeze and will assist the Bureau
in preparing medical policies and procedures and in solving problems
that have medical content.
Social Security Administration 31
A major phase in preparing to administer the freeze was the nego-
tiation of agreements with individual States to make determinations
of disability. The Governors of all States were asked to designate
an appropriate agency or agencies for this purpose. At the end of
the fiscal year, designations had been received from all but two juris-
dictions. In 42 States the vocational rehabilitation agency was des-
ignated; in four the vocational rehabilitation agency and either the
public welfare agency or a special agency for the rehabilitation of
the blind; and in five the public welfare agency. Agreements with
38 States and advances of funds were approved by the Commissioner
by the end of the year. Under the law, the State agencies may elect to
exclude certain cases from the agreement. In general, cases where
disability began many years in the past and cases where the disabled
individual is an old-age insurance beneficiary and therefore may be
eligible for an immediate increase in benefits were currently excluded
from the agreements.
In addition to speeding work on negotiations of agreements and
providing State agencies with funds with which to start operations,
the Bureau made intensive efforts during the second half of the fiscal
year to identify potential applicants and to process freeze applica-
tions. District offices identified several hundred thousand potential
applicants and accepted 143,000 freeze applications before the end of
the fiscal year. Because an old-age insurance beneficiary who had
been disabled before he attained age 65 could, through the freeze, re-
ceive an increase in his benefit amount beginning with the month of
July, priority was given to the securing and processing of applications
from these older people.
The 1954 amendments included a statement of policy to the effect
that disabled individuals applying for a determination of disability
under the freeze should be promptly referred to State vocational re-
habilitation agencies for rehabilitation services, to the end that the
maximum number of disabled individuals may be restored to produc-
tive activity. To carry out this policy, the Bureau, early in the fiscal
year, began describing the services available under State vocational
rehabilitation programs to each disabled person inquiring about the
freeze. Concurrently, contacts were made with State rehabilitation
agencies to work out arrangements for making prompt and effective
referrals. As these arrangements were completed State agencies be-
gan receiving information on many thousands of disabled individuals,
including many who were not freeze applicants. Although it is too
early to assess accurately the substantial values that will result from
this process, experience thus far has shown that a large proportion
of the disabled persons referred were not previously known to voca-
tional rehabilitation agencies.
32 Department of Health, Education, and Welfare, 1955
The Division of Disability Operations began making tentative de-
terminations on cases in March. About 62,000 applications were re-
ceived in the Division before the close of the fiscal year. Although
only a scattering of determinations had been completed by State
agencies, the volume will grow rapidly as the agencies become staffed
and trained.
In July 1955 the benefit checks of more than 18,000 old-age insur-
ance beneficiaries were raised as the result of the freeze; additional
cases were in process. The average July rise was $10.48 (in some
cases a portion of the increase was attributable to the drop-out provi-
sion in the 1954 amendments). Dependents of old-age insurance
beneficiaries entitled to the freeze received proportionate increases in
their benefits.
OTHER ADMINISTRATIVE DEVELOPMENTS
Several years of detailed research have gone into the study of the
possible application of large-scale electronic data-processing equip-
ment to the Bureau’s earnings record operation. Studies culminated
this year in the selection of data-processing equipment which will be
installed in the latter part of fiscal year 1956 for maintaining earn-
ings records and for properly crediting earnings items reported in-
correctly by employers. This equipment, using magnetic tape to record
earnings information, will eliminate the setting up of a second sum-
mary punchcard file for approximately 80 million accounts on July 1,
1956, which would otherwise have been necessary in order to include
the additional data required by the 1954 amendments in making benefit
computations. In addition, its use in the operation to properly credit
incorrectly reported earnings items will reduce the number of items
that cannot be credited and will cut the cost of the operation sub-
stantially. Within a year after initial installation, the use of the
equipment will be extended to the Bureau’s statistical operations,
where increased efficiency will result.
Another major subject of study over the past several years has been
the plan to combine social security reporting with reporting for
income-tax withholding purposes. Under that plan the quarterly
wage reports now filed for social security purposes would be elim-
inated for those employers whose employees were also subject to in-
come-tax withholding. The withholding-tax statements (Forms W-—
2) filed by the employer once a year for each employee would be used
to maintain the wage records necessary in the old-age and survivors
insurance program. Under agreement with the Treasury Depart-
ment, the copies of the Forms W-2 filed by employees with their
income-tax returns would also be sent to the Bureau of Old-Age and
Survivors Insurance for withholding-tax verification purposes.
Social Security Administration 33
The plan is expected to reduce the reporting burden of employers
(about 200 million wage items would be eliminated), to provide an
automatic method whereby employees may verify annually the accu-
racy of reports of their earnings under old-age and survivors insur-
ance, to effect improvements in efficiency in the Government’s process-
ing operations, and to strengthen social security tax and withholding
tax administration.
Adoption of legislation to carry out the proposal has been recom-
mended by the President and a bill (H. R. 7770) embodying the plan
has been introduced in the House of Representatives.
In September 1952, the House Appropriations Committee initiated
studies of the possibility of check writing by benefit payment agencies
to replace the current practice of certification by agencies and dis-
bursement by the Treasury Department. Subsequent to experiments
by the Railroad Retirement Board, the Bureau of Old-Age and Sur-
vivors Insurance with the Treasury Department and the General
Accounting Office studied possible applications of this procedure to
the old-age and survivors insurance area offices. As a result of these
studies the Bureau’s Birmingham Area Office in July 1955 assumed
the responsibility, on an experimental basis, for writing benefit checks.
In the 1956 appropriations bill the Congress authorized expenditure
of $3,870,000, in addition to amounts previously authorized, for a
building to house all of the Baltimore operations of the Bureau, and
also authorized the use for construction of funds previously author-
ized to be used in preparing for construction and not required for
that purpose. The limit of cost as established by this congressional
action is $25,370,000. During the year the Government acquired title
to the site for the building, on the outskirts of Baltimore.
Financing the Program
In setting the schedule of contribution rates in the 1954 amend-
ments Congress again made clear its intent that the old-age and sur-
vivors insurance program is to be self-supporting from contributions
of covered workers and employers. The rates in the schedule were
arrived at after careful review of long-range actuarial cost estimates.
According to these estimates, the level-premium cost of the program
after 1952 on an intermediate basis, assuming interest at 2.4 percent
and earnings at the levels that prevailed during 1951 and 1952 (the
latest then available), was 7.50 percent of payroll. The level contri-
bution rate equivalent to the graduated rates in the law was estimated
at 7.12 percent of payroll, so that there was an estimated deficit of
0.38 percent.
34 Department of Health, Education, and Welfare, 1955
Revisions in these estimates have recently been prepared that take
into account the rise in earnings levels since 1951-1952 and the
most recent coverage and benefit experience. According to these new
estimates the level premium cost of the program after 1955, on an
intermediate basis and assuming 2.4 percent interest, is 7.51 percent.
The level contribution rate equivalent to the graduated contribution
rates in the law is estimated at 7.29 percent, with a resulting deficit
of 0.22 percent. Thus the new estimates show that the deficit has
been significantly reduced. Taking into account the practice of using
contribution rates rounded to convenient fractions, the system is as
nearly in balance as is practical.
The difficulties involved in making exact predictions of the actuarial
status of a program that reaches into the distant future are widely
recognized. If different assumptions as to, say, interest, mortality, or
earnings had been used, different results would have been obtained.
Accordingly, no one set of estimates should be looked upon as final.
As economic and other conditions change, the Department will con-
tinue to prepare new cost estimates reflecting the latest information
available.
A Study of the Minimum Benefit
Public Law 761, the Social Security Act Amendments of 1954,
contained the following section calling for a study of the minimum
benefit under the old-age and survivors insurance program:
Sec. 404. (a) The Secretary of Health, Education, and Welfare shall conduct
a full and complete study with a view to determining the feasibility of increasing
the minimum old-age insurance benefit under title II of the Social Security Act
to (1) $55 per month, (2) $60 per month, and (8) $75 per month.
(b) Such study shall include (1) a detailed analysis of the estimated increase
in cost, if any, involved in increasing such minimum benefit to each of the above
referred to amounts, (2) estimates of the financial impact such increase would
have upon the Old-Age and Survivors Insurance Trust Fund, and (8) an estimate
of the amount, if any, by which Federal grants to the States for public assistance
would be reduced by reason of such increase in minimum old-age insurance
benefits.
(c) The Secretary shall report to the Congress at the earliest practicable date
the results of the study provided for by this section.
In accordance with this directive a study of the feasibility of in-
creasing the minimum benefit to the specified amounts was conducted
during the fiscal year 1955. The study included, in addition to the
required analysis of costs and of the impact on Federal grants for
public assistance, an analysis of the relationship of the proposed in-
creases to employment patterns, earnings, and benefit levels of workers
and of beneficiaries with a view to determining who would benefit
Social Security Administration — AS dsrpiiitsones) 35
from, and who would be disadvantaged by the proposed increases in
benefits and cost.
In connection with the study, estimates were prepared of the bene-
fits that are expected to be awarded under the program in the next
S5years. Itis anticipated that about 80 percent of the benefits awarded
to retired men workers during that period will be based on earnings
after 1950 and will reflect the changes in the program, described earlier,
that are expected to improve benefit adequacy. Among these retired
male beneficiaries whose benefits are based on earnings after 1950
only 6 percent are expected to qualify for less than $60 a month; over
80 percent are expected to receive benefits between $75 and $108.50.
The study was completed and a report on the study was submitted
to the Congress shortly after the end of the fiscal year. ‘The conclu-
sions reached in the study, as summarized in the report, are as follows:
. . . the proposed increases in the minimum would result in appreciable in-
creases in the cost of the old-age and survivors insurance program. The increase
in cost on a level-premium basis for the $55 minimum would be 0.6 percent of
payroll; for the $60 minimum, 0.9 percent ; for the $75 minimum, 1.8 percent.
With a $55 minimum the savings in Federal grants to States for old-age as-
sistance would amount to about 4 percent at present and about 8 percent in 1960.
The comparable figures for a $75 minimum would be 10 percent now and some-
what under 19 percent in 1960. The additional expenditures for old-age and
survivors insurance in 1955 would amount to from 5 to 7 times the reduction in
the Federal share of assistance costs ; for 1960 from 8 to 11 times.
Those who would benefit from the proposed increases in the minimum, aside
from those people now on the rolls, would be widows whose husbands died before
the recent improvements in old-age and survivors insurance, families where
the wife had barely enough covered work to be insured, and people who had spent
most of their lives outside of covered work such as doctors, lawyers, Federal em-
ployees, and investors. In addition there would be some regular lifetime work-
ers in low-wage areas, such as Puerto Rico and the Virgin Islands, or in farming,
with its low cash wage and considerable remuneration in kind. The chief group
that would be hurt by reason of paying additional contributions without any
benefit increases would be the regular, full-time, lifetime workers who supported
themselves and their families throughout their lives by work in covered jobs.
It would seem very difficult to justify to the long-term contributors to the sys-
tem, who even under present law receive less in proportion to their contributions
than do the short-term contributors that they must pay still higher contributions
to help finance benefit increases for others while not getting additional benefits
themselves. Especially would this be true when it is considered that among
those who would receive the increased amounts would be self-employed doctors
and lawyers, Federal workers, investors and others whose major source of sup-
port—income from noncovered work or investments—is not subject to the taxes
that support the program.
Thus the provision of high minimum benefits not only would increase the cost
of the program but it might also jeopardize the financing of the program by de-
creasing the willingness of the long-term regular worker to support the system.
In the opinion of the Department of Health, Education, and Welfare there are
values inherent in the contributory, variable-benefit system that make it most
important that no step be taken, however expedient it may seem in the short
- run, that would weaken the financial basis of the system,
36 Department of Health, Education, and Welfare, 1955
Legislative Developments in 1955
A bill (H. R. 7770) to consolidate reporting of wages for income-
tax withholding and social security purposes was introduced in the
House of Representatives shortly before the first session of the Eighty-
fourth Congress adjourned. Since quarterly reports of earnings would
not be made under the plan for workers covered by the income-tax
withholding procedures, the bill provides for changing the insured
status requirements under the program from the present quarterly
basis to an annual basis.
H. R. 7770 also includes a provision under which the Federal
old-age and survivors insurance trust fund would earn a higher rate
of interest on its investments. The law now requires that special
obligations issued to the trust fund bear interest at a rate equal to
the average rate of interest borne by all interest-bearing obligations
of the United States forming a part of the public debt. (When the
average rate is not a multiple of 1% of 1 percent, the rate of interest
is the multiple of 14 of 1 percent next lower than the average rate.)
In determining the interest rate under this rule all obligations, in-
cluding very short-terms ones, are included. Yet the financial com-
mitments of the system are basically of a long-term nature and it is
appropriate to take that fact into account in arriving at a rate of
interest that is equitable. Under H. R. 7770 the interest rate on
special obligations issued to the fund would be the average rate of
all marketable United States Government obligations having matur-
ity dates more than 5 years after issuance; thus short-term obligations
would not be considered. ‘The bill also provides that the average
rate would be rounded to the nearest (rather than the next lower)
multiple of 14 of 1 percent.
Late in the first session, the House of Representatives passed H.
R. 7225, a bill that would lower the retirement age to 50 for insured
individuals who are permanently and totally disabled, reduce the
benefit eligibility age for wives, widows, female parents, and women
workers to 62, continue monthly benefits for disabled children after
age 18, extend old-age and survivors insurance coverage to self-em-
ployed professional people not yet covered (except doctors) and a few
smaller groups, increase the contribution rates, and establish an Ad-
visory Council on Social Security Financing. Time did not permit full
consideration of the measure by the Senate. The Department en-
dorsed the extension of coverage provided by the bill but stated that
the other provisions required study and evaluation more extensive
than could be provided during the closing days of the 1955 session
of Congress.
Social Security Administration 37
After a number of months of intensive study and public hearings,
the Select Committee on Survivor Benefits of the House of Represen-
tatives (the Hardy Committee) reported out a bill, H. R. 7089, that
was passed by the House on July 13, 1955. The Senate Committee on
Finance is expected to consider the bill at the next session of the
Congress. This bill would make major improvements in the sur-
vivor benefit programs for servicemen, including extension of con-
tributory old-age and survivors insurance coverage to members of the
Armed Forces and coordination of the survivor benefits payable by
the Veterans Administration with those that would be provided by
old-age and survivors insurance. The bill would substantially carry
out the recommendations of the President and of this Department
that coverage be extended to members of the uniformed services on
a contributory, wage-related basis.
H. R. 7089 includes provision for reimbursement of the Federal
old-age and survivors insurance trust fund for past and future expen-
ditures resulting from the gratuitous $160 monthly wage credits
which are provided under existing law for military service performed
since September 15, 1940.
When it became evident that Senate consideration of H. R. 7089
could not be completed in 1955, the Eighty-fourth Congress enacted
Public Law 325 asa stop-gap measure. This law extended the expira-
tion date of the gratuitous $160 monthly wage-credit provision from
July 1, 1955, to April 1, 1956. If H. R. 7089 is enacted to provide
contributory coverage of the Armed Forces effective January 1, 1956,
the social security law will need to be amended so that the $160 gratu-
itous credits will not be granted for military service after 1955.
In addition to the significant developments that occurred during
the year in respect to improved retirement and survivors protection
for members of the Armed Forces, the President took steps to im-
prove veterans’ legislation by establishing the President’s Commis-
sion on Veterans’ Pensions, with General Omar N. Bradley as Chair-
man. At the President’s direction, this Commission began a
comprehensive study of the Federal laws providing nonmedical
benefits to veterans and their dependents, including the relationship
of these benefits to benefits provided under the social security and
other general programs, as a basis for recommendations to be sub-
mitted to the Congress. The Department was asked to furnish
information about the present and potential effects of the old-age
and survivors insurance program and others administered by the
Department on veterans.
Amendments to the Railroad Retirement Act were approved Au-
gust 12,1955. These amendments made no basic changes in the coor-
dination of the railroad retirement and old-age and survivors
38 Department of Health, Education, and Welfare, 1955
a eT TPIS eR Ok GANA Ss AS
insurance programs; however, they did remove the former require-
ment in the railroad law that survivor annuities be reduced by the
amount of any old-age and survivors insurance benefit (based on a
different wage record) payable to the annuitant.
Some progress was made during the year toward carrying out the
recommendation of the Committee on Retirement Policy for Federal
Personnel that old-age and survivors insurance coverage be extended
to employees covered by the Federal civil service retirement system
and that the latter system be revised to be supplementary to old-age
and survivors insurance. The Department of Health, Education,
and Welfare believes that the recommendation, if carried out, would
substantially improve the protection afforded to Federal employees.
Public Assistance
The twentieth year of administering public assistance under the
Social Security Act was an occasion for taking stock—appraising
gains and evaluating needs in planning the future direction of the
program.
Gains in Public Assistance
Benefits of the public assistance titles of the act are now extended
to the needy aged and blind and to dependent children in all the ap-
proximately 3,100 counties in the United States, and in Alaska, Ha-
waii, the District of Columbia, Puerto Rico, and the Virgin Islands.
Nevada, since 1945 the only jurisdiction without a federally aided
program of aid to dependent children, passed legislation authorizing
the initiation of its program in July 1955. The federally aided pro-
gram initiated in Maine during the year brought to 43 the States
administering aid to the permanently and totally disabled for which
Federal grants were provided under a 1950 amendment to the act.
In addition, States provide general assistance, using only State and/or
local funds.
During the past 20 years the State public assistance programs have
undergone great development in their ability to help people meet their
needs in ways that are consistent with the dignity of the individual
and with respect for his rights and responsibilities. Much of the gain
is attributable to implementation of concepts embodied in the public
assistance titles of the act reenforced by the knowledge and experience
of related fields of economics, law, social work, medicine, and public
administration.
For example, placement of responsibility with a single State agency
for statewide operation of the program has contributed to the develop-
Social Security Administration 39
ment or strengthening of State departments of public welfare through-
out the country and provided for equitable administration of as-
sistance to needy people within a State. Although traditional respon-
sibility of the States and localities for administering public assistance
was retained, certain provisions in the Social Security Act reflect the
national interest, such as those relating to proper and efficient admin-
istration and consideration of income and resources in determining
need for assistance. 7
The act also provides for a fair hearing when a needy person has
been denied aid or is dissatisfied with the amount of his assistance
payment, or when his application has not been acted upon with reason-
able promptness. This has protected needy persons against arbitrary
or erroneous decisions of an individual staff member and strengthened
State responsibility by providing for State review of a local decision.
Most States define a needy person as one whose income and resources
are too small to provide what the State has set as the minimum re-
quired for basic maintenance needs, and today aid is usually given to
supplement any income and resources the applicant possesses up to
this standard. However, standards in many States are still far below
what many consider necessary to secure the essentials of well-being.
Much of the increase in public assistance payments during the past
two decades reflects increased living costs. For example, although
there was an increase in the average monthly old-age assistance pay-
ment from $15.04 to $51.89 from 1936 to 1955, the actual purchasing
power of today’s payment is $26.58 in terms of the 1936 dollar.
The 1950 amendment to the Social Security Act requiring the desig-
nation by each State of an authority to establish and maintain stand-
ards in institutions where assistance recipients reside has provided
an impetus for a nationwide movement to raise standards of institu-
tional care. There has also been increasing emphasis in administering
assistance in such a way as to help the needy person make the maximum
use of his capacities for self-help and to deal constructively with
problems which have contributed to his need for assistance.
Public assistance has helped to strengthen family life in many ways.
By aiding the needy aged, blind, or disabled individual within his
family setting, he has been enabled to remain at home without inter-
ruption of family life because of need alone. Through aid to de-
pendent children the needy parent and child have been enabled to
remain together, and children have been provided the opportunity of
growing up in the setting of their own family relationships. Efforts
toward rehabilitation of the needy disabled have helped some gain
greater self-sufficiency and others to resume responsibility for the care
and support of their families. Public assistance, in supplementing the
old-age and survivors insurance program, has added to the basic
40 Department of Health, Education, and Welfare, 1955
economic underpinning which has enabled the needy family to pre-
serve, in the face of adversity, the continuity of cherished relationships
and other strengths of family living.
Trends in Caseload and
Expenditures?
Nearly 6 million persons (5.8 million) received some form of public
assistance in June 1955—3.5 percent of the total population, or ap-
proximately 1 in 28. This represented an increase of 200,000 from
the preceding June, with the highest increase between November and
December. The year’s peak of 6.1 million was reached in March.
All programs showed increases except old-age assistance.
Expenditures for assistance payments from Federal, State, and
local funds during fiscal 1955 amounted to $2,712 million, representing
about 1 percent of personal income payments in the Nation. The
Federal share of this expenditure was $1,351 million. The 5.8-percent
increase in total expenditures reflected increases in average payments
in each of the assistance programs, owing in part to increasing expendi-
tures for medical care through vendor payments and higher standards
of assistance in some States.
OLD-AGE ASSISTANCE
In June 1955, 2,549,000 persons received old-age assistance, a de-
crease of about 33,800 persons, or 1.3 percent, from the previous June.
The greatest monthly reduction, 8,700, occurred in October 1954 when
a substantial number of cases were closed following receipt of higher
old-age and survivor insurance benefits provided by the 1954 amend-
ments to the act. Only 14 States had higher caseloads at the end of
the year than at the beginning. The national average monthly pay-
ment for old-age assistance was $52.30 in June 1955 as compared
with $51.45 a year earlier.
AID TO DEPENDENT CHILDREN
About 620,000 families received aid to dependent children in June
1955, an increase of about 38,500 families, or 6.6 percent, from the
preceding June. Increases in caseloads were general throughout the
country with reductions in only 7 States. The average payment per
family in June 1955 was $86.78 ($24.04 per person) as compared with
$85.08 per family ($23.81 per person) in June 1954.
1 Caseloads, averages, and total expenditures in all programs except general assistance
are based on data including vendor payments for medical care and cases receiving only
medical care.
Social Security Administration 41
AID TO THE BLIND
Nearly 104,000 persons received aid to the blind in June 1955, an
increase of about 3,000 during the year. Only 16 States had fewer
recipients, and 11 States had lower average assistance payments at the
end of the year than at the beginning. The national average monthly
payment in June 1955 was $57.41, as compared with $55.80 in the
previous June.
AID TO THE PERMANENTLY AND TOTALLY DISABLED
About 236,800 persons in 48 States received aid to the permanently
and totally disabled in June 1955, an increase of 25,100 from June
1954, owing largely to the relative newness of the program. The
average monthly payment was $54.93 in June 1955, as compared with
$53.51 in June 1954.
GENERAL ASSISTANCE
Some 310,000 cases received State and/or locally financed general
assistance in June 1955, an increase of 11,000 or 3.8 percent from the
preceding June. ‘This was a decrease of 71,000 cases from the year’s
high of 381,000 reached in March. That peak represented the largest
number receiving general assistance since April 1951 but was 271,000
under the postwar peak of 652,000 in March 1950. The average pay-
ment per case for June 1955 was $53.78, as compared with $51.62 a
year earlier.
Effect on Public Assistance of the
Expanding OASI Program
A 1954 amendment extended old-age and survivors insurance cover-
age to about 10 million more people in the course of a year (over half
of them farm operators and farm workers). ‘This is expected to have
a significant long-range effect in reducing the number of aged depend-
ent on assistance, since many come from agricultural groups to which
insurance coverage was extended. It is estimated that by about 1980
a very high proportion of the aged will receive old-age and survivors
insurance benefits; those who do will need old-age assistance only
if their insurance benefits are low or if they have special needs. Some
of those not receiving insurance benefits may also need old-age
assistance.
However, the immediate effect in reducing the number dependent
on public assistance is more limited. Many of those currently re-
ceiving old-age assistance never had and are not likely to obtain cover-
368636—56——4
42 Department of Health, Education, and Welfare, 1955
age under the insurance program because during their working years
the coverage was limited. Others are eligible for only minimum insur-
ance benefits insufficient to meet their basic needs or have unusual
expenses, such as costly medical and/or nursing care. As a result,
although the proportion of aged population receiving assistance
dropped from 22.5 percent in September 1950 to 17.9 percent in June
1955, the rate of reduction was only slightly higher during 1955, the
year following the amendments, than in the preceding year (1.8 per-
cent as compared with 1.0 percent).
The liberalized benefits, however, resulted in an average increase
of $5 a month in the insurance benefit payment of aged persons re-
ceiving supplementary old-age assistance. A somewhat smaller in-
crease was received by most wives of retired workers and most widows
receiving monthly benefits in excess of $25. Widows’ benefits at the
previous minimum of $18.80 were raised to $30 a month. Asa result,
although about 86 percent of the aged receiving both assistance and
benefits in September 1954 continued to receive assistance, the amount
of assistance was reduced; 2 percent of the cases were closed. Aid to
dependent children families also receiving benefits had an average
increase of over $8 a month per family. About 73 percent had their
assistance payments reduced, and 3 percent of the cases were closed.
Payments for the other old-age assistance and aid to dependent chil-
dren cases were not reduced.
The increase in benefits resulted in a reduction of almost $2.1 mil-
lion a month in payments to those receiving both old-age assistance
and insurance benefits and $197,000 for aid to dependent children
families also receiving benefits, in September 1954. In many cases,
the increase in benefits released some State and/or local funds to
meet current unmet need of recipients.
AGED PERSONS RECEIVING BOTH INSURANCE AND ASSISTANCE
In February 1955, about 489,000 insurance beneficiaries received
old-age assistance to supplement minimum or near minimum insurance
benefits insufficient for their basic needs or to meet special needs.
They represented nearly a fifth (19.2 percent) of all old-age assistance
recipients. ‘The number receiving both assistance and benefits in-
creased 77 percent since September 1950 and 5.6 percent since
February 1954.
As a result of benefit increases provided by the 1954 amendments,
the average old-age assistance payment for recipients receiving both
insurance and assistance was reduced from $48.00 in February 1954
to $40.92 in February 1955. Aged beneficiary-recipients get, on the
average, a lower benefit and a lower assistance payment than those
receiving only insurance benefits or only assistance payments. For
Social Security Administration 43
recipients who were not drawing insurance benefits, the average old-
age assistance payment was $54.20.
FAMILIES WITH CHILDREN RECEIVING BOTH INSURANCE AND ASSIST-
ANCE
More than 32,000 families received both insurance benefits and
assistance in February 1955—5.2 percent of the families receiving aid
to dependent children in February 1955 in comparison with 5.9 per-
cent a year earlier. Since only 1 family in 6 receives assistance
because of the death of a parent—the risk covered by the insurance
program—the aid to dependent children program is affected to a
more limited extent by expansion of insurance coverage and liberali-
zation of benefits.
The average assistance payment in February to families receiving
both types of benefits was $66.71; to families not receiving insurance
benefits the average assistance payment was $87.17.
Program Developments
_ The need for welfare services, in addition to financial assistance,
has been increasingly recognized as illness and disability became
major factors contributing to dependency, and the relatively large
number of families receiving aid because the father has deserted gave
evidence of social problems on which further help is needed. In-
creased emphasis was given to the broad purpose of public assistance—
helping needy persons through the provision of income and services
to achieve as much economic and personal independence as possible.
To increase the effectiveness of administration in carrying out broad
program objectives, work undertaken during the year was based on
(1) an evaluation of changing program needs in planning to provide
assistance and services effectively; and (2) an analysis of operations
in planning for the most appropriate and efficient administration at
Federal, State, and local levels. Full utilization was made of the ex-
perience, knowledge, and skill of all those directly concerned with the
administration of the program—State and local public assistance staff,
regional and central office staff of the Bureau, and those in other agen-
cies and organizations both within and outside the Department. This
was evidenced, for example, by requesting and utilizing State consid-
eration of policy material in early developmental stages; joint partici-
pation of Federal, State, and local staff in projects in specific subject
areas; wide regional and central office participation in work planning ;
and utilization of technical and lay advisory groups in evaluating
program needs and legislative proposals, detailed below.
44 Department of Health, Education, and Welfare, 1955
a ce nk a tag te
Five major areas were identified on which Bureau work was focused
during the year: (1) improvement in services to needy individuals;
(2) increased understanding of the public assistance program through
citizen participation; (3) improvement in public assistance adminis-
tration; (4) improvement in methods of carrying out Federal respon-
sibilities in working with States; and (5) development of the defense
welfare services program.
IMPROVEMENT IN SERVICES TO NEEDY INDIVIDUALS
Improvement in services available to needy persons, including both
clarification of policy on services and obtaining skilled staff to provide
them, was considered the most important problem on which further
work was needed.
Chart 2.—MAJOR CAUSES OF DEPENDENCY OF PUBLIC ASSISTANCE RECIPIENTS,’ 1955
5.1 MILLION
DEATH OF fs
PARENT [,,2 == AGED
(OAA)
0.4 M
AVERAGE AGE
75 YEARS OLD AGE
2.5 M
20% BEDRIDDEN OR
NEED CONSIDERABLE
PERSONAL CARE
ABSENCE
OF PARENT
14M
1 Excludes general assistance recipients under State and local programs.
Need for welfare services.—Dependency of one and a third million
persons receiving federally aided assistance today is attributed pri-
marily to disability, chronic illness, or severe infirmities of old age.
In addition, absence of a parent accounts for need in more than half
of the 620,000 families continuing to receive aid to dependent children.
As shown in chart 2? nearly a fifth of the aged receiving assistance—
*These data were obtained through studies, undertaken by the Bureau with participa-
tion of State public assistance agencies, of the characteristics of recipients of old-age
assistance, aid to the disabled, and aid to dependent children; and more recently through
participation in the study of the homebound made by the Office of Vocational Rehabili-
tation at the request of Congress.
Social Security Administration 45
some 460,000 persons—are bedridden or require a substantial amount
of care from others because of physical or mental impairment; 235,000
persons receive aid to the permanently and totally disabled; more than
100,000 persons receive aid to the blind; and 450,000 persons in 125,000
families receive aid to dependent children because of need due to the
incapacity of a parent. In addition, a high proportion of the other 2
million aged caring for their own daily needs have health and other
problems relating to aging; their average age is 75 years.
The aging, the largest group receiving public assistance, have need
for many types of services. In addition to a high incidence of chronic
illness, the aging suffer from the loss of family ties and friends, from
lack of recreational outlets, and from frequent lack of employment
opportunities irrespective of skill or physical vigor. Many need help
in getting medical care, in devising arrangements to maintain their
own homes as long as their health permits, and in obtaining suitable
institutional care if and when needed. Others can benefit from skilled
help with personal family problems. Estranged husbands and wives
might be reunited and the deserting parent helped to resume the re-
sponsibilities and satisfactions of family living, with benefit to the
children. Undoubtedly, more old people can be enabled to make
greater use of their individual capacities and thus participate in and
contribute more effectively to family and community life.
Some recipients of public assistance who now require considerable
care from others because of age or disability could be helped to learn
how to care for themselves, thus providing the individual with a
greater degree of independence and releasing the time of others in the
family for more productive pursuits. The use of homemaker service
would enable some older people to maintain their own homes for a
longer period than would otherwise be possible. Vocational rehabili-
tation and other services might help others among the younger groups
who receive public assistance to engage, as many would like to, in
some gainful work.
Emphasis on welfare services.—Federal and State interest was in-
tensified during the year in coordinating welfare, medical, vocational,
and other services with financial assistance to help needy persons be-
come self-sufficient to the full extent of their capacities. The Bureau
of Public Assistance worked with other Bureaus in the Department
and with national voluntary social agencies in planning for the devel-
opment and utilization of other needed community resources in order
to make available to public assistance recipients services that will con-
tribute to the improvement of their capacity for self-help or self-care.
Interest in welfare services was stimulated by the release of the
draft report on services in the aid to dependent children program
developed by the working group composed of staff from both the
46 Department of Health, Education, and Welfare, 1955
hE nL AE hf eh SME AS ER EE
Children’s Bureau and the Bureau of Public Assistance. The report
was sent to all State public assistance and child welfare agencies
and provided a basis for joint study of the need for services in general
and the specific needs in the aid to dependent children program.
On the basis of joint planning by regional staff of both Bureaus, seven -
regional conferences including 38 States were held during the year.
These were attended by administrators, program supervisors of aid
to dependent children and child welfare services, and in some instances
by other State and local staff. The report was discussed individually
with the other States and Territories. Similar group discussion has
been held in the Bureau’s central office and regional offices, with full
staff participation. The regional staff of both agencies is continuing
to encourage, among State and local staff, wider group discussion of
concepts in the report and the further exploration, testing, and devel-
opment of the quality of the job now being done.
The Bureau is attempting to give encouragement to the work already
being undertaken in the expansion of needed services over the country
by State and local governments, private organizations, and others
interested in the welfare of people. It has especially continued its
participation in the activities of many groups in stimulating the devel-
opment of needed services for the aged.
The Bureau is represented on the Department of Health, Education,
and Welfare’s Committee on Aging, which is concerned with broad
needs of the aging population and how the programs of the constituent
units of the Department may cooperate in meeting them. The Bu-
reau continued its collaboration with the National Social Welfare
Assembly’s National Committee on Aging. A Bureau staff member
led one of the workshops at the Assembly’s Annual Meeting and is
also chairing a committee to advise on the development of a pamphlet
on agency examples of casework services for the aging. Participa-
tion has also continued on the American Public Welfare Association’s
Committee on Aging.
A cooperative project during the year was a joint meeting between
the Bureau and the Office of Vocational Rehabilitation, attended
by several State administrators of public assistance and vocational
rehabilitation programs and a selected regional representative from
each constituent. This conference provided opportunity for com-
ment and suggestions on ways to make more helpful to State agencies
the document on “Working Together To Rehabilitate the Needy
Disabled,” developed and planned for joint release by the two Bureaus.
The Bureau also participated with other groups concerned with
improved coordination between voluntary and public agencies in pro-
viding casework services, including the Family Service Association
of America and the National Social Welfare Assembly’s Conference
Social Security Administration 47
on Individualized Services. Similarly, work with the National Legal
Aid Society was initiated in identifying needs of public assistance
recipients and encouraging State and local agencies to participate in
the development of legal aid services.
There also has been increased activity on the part of State agencies
in developing services and in making maximum use of other com-
munity resources and a corresponding increase in requests to the
Bureau for assistance in this area. During the year, work was initi-
ated within the Bureau on statements of the broad areas of social
welfare services appropriately included in public assistance admin-
istration and the role of public assistance agencies in providing and
securing them. Background materials are being collected which
reflect recent experience of public assistance agencies in the develop-
ment of constructive services. Work is also continuing on a state-
ment on the use of homemaker services and experiences of several
States in this area.
Need for more skilled staff—The skill and helpfulness with which
the services of the agency are made available to the needy individual
will in large measure determine whether he will be encouraged to
make maximum use of his own capacities. Adequate service, however,
depends largely on the technical skill of staff. Public agencies gen-
erally have been unable to establish qualifications and salaries for
staff at a level that will assure the professional skill needed. Through
staff development programs, State public assistance agencies in many
instances have enabled untrained workers to improve the quality of
service provided. Professional training, however, is needed to assure
that skilled services are provided to needy persons in order to achieve
the full objectives of the public assistance programs.
As indicated in chart 3 less than 2 percent of public assistance staff
in casework jobs had full social work training—2 years of study in a
graduate school of social work. Yet public assistance staff was respon-
sible in 1955 for dealing with nearly 6 million persons dependent on
public assistance, many of whom had serious individual and family
problems. Although an additional 15 percent of the caseworkers had
some social work training, more than two-thirds of these had less than
1 year of training. The largest number, 49 percent, had only under-
graduate college training, or graduate training in other fields, and
about 9 percent had only high school training or less.
The low salary of these caseworkers, averaging $2,569 in 1950, even
though increased since, has contributed to both the inability to secure
professionally trained workers and the high rate of turnover of public
assistance personnel. In 1954, for example, more than a fourth of all
persons leaving public assistance casework positions had been in their
jobs less than 1 year; the educational qualifications of those leaving
SSS
438 Department of Health, Education, and Welfare, 1955
Chart 3.—EDUCATION AND SALARY OF PUBLIC ASSISTANCE CASEWORKERS
PUBLIC ASSISTANCE CASEWORKERS
EDUCATION
SALARY
734,000 OR MORE
0.2%
—— ] Jr:
| >
SOCIAL WORK
DEGREE
UNDER $2,000
SOME GRADUATE
SOCIAL WORK
eeeesevccces
oe
eeeee
ee eens
eeeee
e@eeoee “ — — wees
eeeoee
eeeeeee
jocnecce
eeeceee
Pete eeececerrees ees
eee oeeeesosoeeevese
ereseerosceese’
OO, =
°
OTHER GRADUATE
STUDY OR
BACH. DEGREE
SOME COLLEGE
STUDY
V 78% 777
YY;
HIGH SCHOOL
OR LESS
Source: Public Social Welfare Personnel (1950), Bureau of Public Assistance and Children’s Bu-
reau, 1953.
were slightly higher than those of the new workers recruited. With
only 15 percent of the jobs paying over $3,000 in 1950, public assistance
cannot compete for the limited supply of trained social work staff
available in the country or induce young people to seek such training.
In the consultation provided individually to 22 States and to groups
of States in 6 regions during the year, emphasis was placed on evaluat-
ing current staff development programs and on long-range planning
to provide for continuing progress in ways and means of improving
the quality of agency services. A subcommittee of the Committee on
Personnel and Training advisory to both the Bureau of Public As-
sistance and the Children’s Bureau will participate in the formulation
of criteria for States to use in their long-range staff development
planning.
Case records and recruitment materials were distributed to the
States to facilitate their work. Recordings and films, including two
new Arizona films—‘Rehabilitation of the Blind” and “The Rehabili-
tation Team in Action”—and “Family Affair,” produced by the Fam-
ily Service Association of America, were also made available on loan.
The Bureau has also worked with the American Public Welfare Asso-
ciation’s Committee on Social Work Education and Personnel which
has been active in a variety of areas concerning the education and
standards for personnel in public welfare agencies.
Social Security Administration 49
The Bureau has also continued cooperative work with the Council
on Social Work Education, primarily on development of recruitment
and teaching materials on administration and supervision and on cur-
riculum content. In an effort to improve the quality of public welfare
services, the Council has recently obtained a grant from a private
foundation for a 3-year study, beginning August 1, 1955, on educa-
tional preparation needed for public social services.
Emphasis was also placed on following up recommendations made
by the Committee on Personnel and Training meeting in June 1954.
The committee meeting in June 1955 recommended that continued
effort be placed on developing more adequate plans for financing the
education of public assistance staff and expansion of teaching facilities
in schools of social work.
INCREASED UNDERSTANDING OF THE PUBLIC ASSISTANCE PROGRAM
THROUGH CITIZEN PARTICIPATION
Effort was made during the year to extend understanding of the
public assistance programs through planning for increased use of
citizen participation in its administration. Exploratory work ini-
tiated last year in planning for the use of volunteers to supplement
agency services for recipients and to increase understanding of the
public assistance programs was continued during the year, with the
help of an experienced volunteer. Review was made of selected volun-
teer programs currently in operation; interpretive material was pro-
vided on the value of volunteer service in a public welfare agency; and
criteria were developed concerning the provision of supplementary
services by volunteers.
The role of Federal, State, and local governments in furthering
citizen participation in providing supplementary services was con-
sidered by an ad hoc advisory committee, including representatives
from North Carolina, New York, the District of Columbia, Ohio, and
Kansas, and staff of the American Public Welfare Association and
constituent units in the Department. A report of this meeting was
distributed to participants of the committee and will be sent to State
agencies.
Consideration was also given to other aspects of citizen participa-
tion in public assistance administration, especially through member-
ship on local administrative and advisory boards. Material was pre-
pared for State use on the functions of boards in public assistance
administration. This included detailed information about boards
currently functioning in public assistance programs throughout the
country and recommendations for consideration of proposed changes
in State public assistance legislation concerning types of boards, their
functions, size, method of appointment, and qualifications and terms
of office of members.
50 Department of Health, Education, and Welfare, 1955
ee a
IMPROVEMENT IN PUBLIC ASSISTANCE ADMINISTRATION
To improve the quality of administration and service of the public
assistance program, study has been made of many phases of Federal,
State, and local operations. Reshifting of workload necessitated by
reduced appropriations and changing program objectives resulted in
reappraisal and further streamlining of Bureau functions to enable
it both to assure that provisions of the Social Security Act are carried
out in practice and to develop materials and provide consultation in
the welfare services area. Regional and central office staff participated
in this reappraisal, which resulted in recommendations for a series
of improvements subsequently used as the basis of further work plan-
ning. A time study of regional office activities was also initiated early
in the year. Some progress has also been made in simplifying and
achieving increased integration in work planning and related report-
ing of the regional offices.
Analysis was made of variations among States in the cost of admin-
istering the public assistance programs and the factors causing the
variations. Policies and operations which appear to have resulted in
differences in the average caseload per visitor were analyzed, since this
factor accounted for about three-fourths of the interstate variation in
costs. State agencies furnished much of the basic information for
this study and a committee, representing States with high, medium,
and low administrative costs, participated in exploring the various
factors affecting cost variations.
Study was also initiated on facets of administration of large urban
welfare agencies which present special management problems because
of their size and volume of assistance and services provided. Repre-
sentatives of State agencies responsible for the administration of
public assistance programs in the six largest cities in the country met
with Bureau staff to consider problems of administrative management
and State supervision resulting from local agency size and urban
setting. Discussion focused on methods for carrying out the State
supervisory function, staffing patterns, workloads, and other factors
affecting the costs of administration.
Reviews of State and local administration were conducted by
Bureau staff in 25 States with focus on consideration of eligibility
determination and correctness of amount of payment in 20 States.
In the others, one or more of the following subject areas were exam-
ined : State supervision of local operations, hearings, relatives’ respon-
sibility, operation of the State review team, and promptness in appli-
cations. Findings were discussed with the responsible State officials,
and summaries of review findings were prepared for adminisrative use
in the Bureau.
= Se = ——=
Social Security Administration 51
Consultation and other help was provided to State agencies on
many management subjects, including surveys of administrative and
fiscal procedures, planning for operational changes, development of
management guides for local staff, appraisal of the work of special
investigating units, distribution of illustrative State materials on
manuals and other types of written instructions, and methods for
State determination of workloads and staff for local agencies. Devel-
opmental work by Bureau staff continued on fiscal provisions of State
operations; principles governing Federal financial participation in
the costs of office space, medical care, welfare services, defense activ-
ities, and administrative costs for several States; fiscal accountability
by State agencies; case recording; and measurement of the quantity
and quality of the visitor’s job. Bureau staff participated in sections
on management problems in State conferences, American Public
Welfare Association regional conferences, and other meetings on this
subject.
Legislative proposals.—Although no Federal legislation pertaining
to public assistance was passed in fiscal 1955, study of program needs
led to legislative recommendations included in H. R. 3293 intro-
duced on January 31, 1955. Bureau staff participated in the prelim-
inary work done on these legislative proposals by a task force including
representatives of interested constituent units within the Depart-
ment. ‘The task force appraised the need for legislation, defined
possible areas for action, and made estimates of their cost. The legis-
lative proposals were reviewed by the executive committee of the
American Public Welfare Association, including State public welfare
directors, and leaders of voluntary groups invited by the Secretary
to advise Department officials on matters requiring legislative action.
IMPROVEMENT IN METHODS OF CARRYING OUT FEDERAL RESPONSI-
BILITIES IN WORKING WITH STATES
Attention was also directed toward improvement in methods of
working with States. Effort was made to clarify Federal and State
responsibilities, identify principles in working relationships with
States, determine the best way to present Federal requirements to
States, and distinguish between these requirements and the objectives
toward which States may work in bringing about improvement in
program administration.
Sections of the Bureau Handbook of Public Assistance Adminis-
tration dealing with Federal and State responsibility, sent to State
agencies in draft form, provided a vehicle for joint consideration of
Federal requirements in general, and specific aspects of Federal and
State working relationships. Reports of regional staff discussions
52 Department of Health, Education, and Welfare, 1955
im ne ei ach cc a ae seane re
with State agencies were compiled and used in the reappraisal made of
Bureau functions. Other sections of the Handbook were prepared
dealing more specifically with the responsibilities of a single State
agency and the statewide operation of the public assistance programs,
based on requirements in the act.
Review was also initiated of Federal requirements affecting State
administration of public assistance programs. Effort was made to
identify principles and criteria pertinent to such a review, and to
identify Federal requirements around which problems have arisen
or otherwise are in need of further consideration or revision.
DEFENSE WELFARE SERVICES
Responsibility for planning national emergency financial assistance
and clothing programs was included in the delegation by the Federal
Civil Defense Administration to the Department. This delegation
was made so that these civil defense activities, as well as others,
would be built into and become part of the normal functions of govern-
ment. Following assignment of these programs to the Social Security
Administration, responsibility was given to the Bureau of Public
Assistance in December 1954, since the network of public welfare
agencies throughout the country, with facility for extending assist-
ance and services to people in need of them in every community, pro-
vided both the framework for integrating the newly developing
program and the basic principles and methods to be used in dealing
with people in time of stress.
In carrying out its defined responsibility for developing technical
guidance for States and directing Federal activities concerned with
financial assistance and clothing for the temporary relief or aid of
civilians injured or in want as a result of attack, the Bureau has
been working through State public welfare agencies and is utilizing
the advice and counsel of State agency staff, as it does in other
programs for which it is responsible.
A series of meetings were held with regional and State public
welfare agency staff in eight regions to discuss proposed plans,
policies, and procedures for the two programs. This series of meet-
ings followed consultation with a committee of State administrators.
Other activities included the establishment of a Defense Welfare
Services staff within the Bureau; organization and training of this
staff; preparation of a memorandum of understanding between the
Department of Health, Education, and Welfare and the Federal Civil
Defense Administration; conferences with clothing industry repre-
sentatives and other clothing specialists; and analysis of State civil
defense plans.
Social Security Administration 53
Children’s Bureau
The Children’s Bureau was created in 1912 by an act of Congress
to investigate and report upon all matters pertaining to the welfare
of children and child life among all classes of our people. In 1935
the Children’s Bureau was given the additional responsibility of
administering the grants to the States provided under the Social
Security Act, Title V, to enable them to extend and improve the serv-
ices for promoting the health and welfare of children, especially in
rural areas and in areas of special need.
In recent years the Children’s Bureau has directed special attention
toward the conditions of life for the infant and preschool child.
Its efforts in this direction were continued during 1955 through its
research studies and the interdependent child health and welfare
programs, implemented in part by grants to the States for maternal
and child health, crippled children, and child welfare services.
The Children’s Bureau placed special emphasis, during 1955, on
bulwarking opportunities for development for the older child. “The
Adolescent in Your Family,” a bulletin for parents, was published
and widely distributed. ‘Technical assistance was strengthened for
the State and local coordinating committees for children and youth in
which the young people themselves are active. A Division of Juvenile
Delinquency Service was established within the Bureau to provide
technical consultation to States and communities on the prevention
and treatment of juvenile delinquency.
Some Facts and Figures About Child Life
The number of live births in 1954 exceeded 4 million, reaching a new
all-time high. The estimated birth rate, 25.3 per 1,000 total popu-
lation, is close to the highest in the past 30 years.
The U.S. child population under 18 years increased from 47 million
in 1950 to about 54 million in 1954, a 15-percent rise. Between 1954
and 1965, the number of children under 18 years is expected to rise by
almost 25 percent to a total of 67 million in 1965. In this period the
10-to-17-year-olds will increase by about 50 percent as the large
number of children born in the late 1940’s and early 1950’s enter this
age group. In 1952, 42 percent of the children in the United States
were living in rural areas.
The infant mortality rate for the first 11 months of 1954 was esti-
mated at 26.6 per 1,000 live births, the lowest so far recorded. Many
of the States continue to show marked deviations from the national
average.
54 Department of Health, Education, and Welfare, 1955
About 310,000 infants were prematurely born in 1954. Fifty-eight
percent of neonatal deaths and 41 percent of infant deaths were re-
ported as associated with prematurity. In 1952, 4 percent of reported
pregnancies which reached 20 weeks or more of gestation resulted
in a stillborn infant or death in the neonatal period.
The maternal mortality rate in 1954 was the lowest ever recorded
(estimated at 5.8 maternal deaths per 10,000 live births). Maternal
mortality has declined without interruption since 1929 when the rate
was 69.5 per 10,000. In 1952, over 155,000 births occurred among
mothers who were delivered without a physician in attendance.
Twenty-three percent of births to mothers in the nonwhite group and
S percent of births to mothers resident outside of metropolitan
counties had no medical attendant at delivery.
In 1952 accidents took the lives of 17,121 children, 1-19 years of
age and accounted for 36.3 percent of the mortality of this age group.
Mortality due to accidents was highest in the 15-19 age group; the rate
was 387.2 per 100,000 children. Cancer has become the leading cause
of death due to disease among children 5-19 years of age. Next in
importance among all fatal diseases are these: diseases of the heart
and acute rheumatic fever among children 15-19 years, acute poliomy-
elitis in children 5-14 years, and congenital malformations in the
preschool group.
The estimated 1,476,000 marriages in 1954 were 4 percent fewer
than in 1953. The marriage rate of 9.2 marriages per 1,000 population
in 1954 was the lowest since 1933. However, the proportion of mar-
ried persons in the population, thanks to higher rates in earlier years,
is relatively high. In 1954 close to 69 percent of the adult population
were married; in 1940 the percentage was 60.
Forty-five percent of the 390,000 divorces in 1953 involved families
with children under 18 years of age. About one-third of a million
children had their families broken by divorce in this one year.
In 1953, about 2.9 million children under 18 years, or 1 in 20 of the
Nation’s children, had lost one or both parents by death. This repre-
sents a sharp drop from the number of orphans in the country in 1920
when there were 6.4 million orphaned children, or 1 in 6 children, in
the population. The decline in the number of full orphans has been
particularly striking—from 750,000 in 1920 to about 66,000 in 1953.
An estimated 150,300 children were born out of wedlock during
1952 (54,100 white; 96,200 nonwhite). ‘This number was about 3 per-
cent more than the estimated 146,500 children born out of wedlock
during 1951. There were 58,700 unmarried mothers 15-19 years of age,
or 89 percent of those who bore illegitimate children in 1952. Of
every 1,000 unmarried women between 15 and 44 years, 15.2 gave birth
to a child out of wedlock in 1952,
eee Pe eS Pe | eS te
Social Security Administration 55
An analysis of children living in institutions, based primarily on
data from the 1950 U.S. Census of Population, shows that more than
a quarter million children under 21 years of age (260,429) were
living in institutions of all types in the United States in April 1950.
Almost 28,000 of these children were under 6 years of age. A sizable
number were in institutions primarily designed for adults, such as
prisons and reformatories, jails or workhouses, and homes for the aged
and dependent. Of the 260,429 children under 21 years of age living
in institutions of all types, about one-third (95,260) were living in
institutions for dependent and neglected children. This represents
a decrease of about 34 percent since 1933. For the country as a whole,
81 percent of the 95,260 children were in institutions for dependent and
neglected children operated under private auspices.
The U. S. Senate Subcommittee to Investigate Juvenile Delin-
quency estimated that there are 200,000 to 300,000 boys and girls who
run away from home annually in the United States.
Police arrest data reported by the F. B. I. in its Uniform Crime
Reports for 1,005 cities show that the arrests of juveniles (under 18)
increased 2.3 percent in 1954 over 1953. In 1954, juveniles represented
57.6 percent of all persons arrested for auto theft, 49 percent for
burglaries, 44 percent for larcenies.
Statistical data available to the Bureau for 1954 showed the sixth
consecutive annual increase in the number of delinquency cases re-
ported by the juvenile courts. An estimated 475,000 children came
to the attention of juvenile courts in 1954 because of delinquent be-
haviour. ‘This number exceeded the previous high experienced during
World War II.
Children With Special Needs
The problems of certain groups of children call for special atten-
tion. Some of the more serious are: the adolescent in conflict with
society, the children of agricultural migratory workers, mentally re-
tarded children, and children in unprotected adoptions.
The Nation as a whole is concerned about juvenile delinquency be-
cause of its tragic consequences for the individual young person, its
contagion among youth, and its social and economic costs for the
community. For the past several years the Children’s Bureau has
given particular attention to the problems of delinquent children.
This emphasis is continuing through the coordinated program of the
new Division of Juvenile Delinquency Service (see page 68).
For the country as a whole, it has been estimated that there are
many hundred thousand children of migrant agricultural workers.
It is difficult for any single State to take responsibility for the health,
56 Department of Health, Education, and Welfare, 1955
OO ee
welfare, and education of the children in those families since they are
on the move so much of the year. Because these children are not
residents they frequently do not receive the services that are available
to other children in the communities through which they travel.
The Children’s Bureau, working with the Office of Education, the
Public Health Service, and the Bureau of Public Assistance, is stimu-
lating a pilot project along the East Coast. The purpose of this proj-
ect is to encourage the 10 States involved in the East Coast migrant
stream to do interstate planning for services to migrants so that each
State can more easily perform its share of the total job.
The exact number of mentally retarded children is not known, but
it is estimated that about 1 person per 100 is mentally defective and
that about 750,000 children of school age are of low intelligence. As
the birth rate goes up the number of such children increases. At
the same time the growing complexity of our society makes their so-
cial and vocational adjustment ever more difficult. Parents, doctors,
nurses, educators, and social workers are increasingly concerned about
the health and welfare of these children. The number of parent
groups pressing for action for this special group of children is grow-
ing rapidly.
Unprotected adoptions in which children are placed without the
benefit of social agency skills is a subject of much study and contro-
versy. Because of the seriousness of the black market in adoptions the
Bureau is seeking advice from legal, medical, social work, and other
professional groups and from adoptive parents and law enforcement
agencies. Conferences with the professional groups were begun in
1955, and the work will be more fully developed in 1956.
Federal Interdepartmental Committee on
Children and Youth
The Congress places responsibility upon a number of the agencies
of the United States Government for programs which contribute in
varying degrees to the social well-being of children and youth. In
1948 the President requested these agencies to form an Interdepart-
mental Committee on Children and Youth to assist each other in keep-
ing informed about program developments, to work together for
greater effectiveness in program planning, and to strengthen working
relationships between the Federal Government and the States. This
triple assignment has been carried out during the fiscal year 1955
by the regular monthly meetings of the full Committee, the work of
its subcommittees, and an informational exchange with the State
committees. Twenty-eight Federal agencies are represented on the
Committee.
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Social Security Administration 57
Much of the work of the Interdepartmental Committee goes for-
ward through the activities of subcommittees appointed to deal with
special problems which are timely and involve a number of Federal
agencies. At present there are seven subcommittees. ‘These are con-
cerned with Children of Agricultural Migrants, Transition from
School to Work, Children in the Territories and Islands of the United
States, Juvenile Delinquency, Mental Retardation, Care of American-
Related Children Outside the United States, and the Business of Being
a Parent in This Decade.
The Committee exchanges information with the 53 State and Ter-
ritorial Committees on Children and Youth. It publishes, irregu-
larly, a newsletter, “What’s Happening for Children and Youth,”
and sends pertinent Federal publications to the State and Territorial
Committees. The Children’s Bureau furnishes secretarial assistance
to the Interdepartmental Committee on Children and Youth.
Programs of the Bureau
RESEARCH IN CHILD LIFE
The Bureau’s small research staff, working under the guidelines
of a newly developed plan, is helping to carry out the legislative
mandate “to investigate and report upon all matters pertaining to
the welfare of children.” Research on programs for disadvantaged
children has been emphasized this year. In addition to its own studies
and those conducted jointly with others, the Bureau has sought to
stimulate research in child life by other agencies by formulating
the questions requiring study and developing research methods and
has assisted agencies engaged in such research.
In its technical research, studies of the costs and effectiveness of
various programs have received major emphasis. Study subjects in-
cluded the unit costs of child placement and institutional care of
children, methods of evaluative research as illustrated in studies of
psychotherapy, and a review of studies on the evaluation of school
health services. Improvement in methods of reporting for maternal
and infant mortality studies has been stressed as a guide for the pre-
ventive programs of the medical profession. Work continued on
assembling information about programs and services for mentally
retarded children. Throughout the country juvenile delinquency is
being studied from both the psychological aspect of the inner motiva-
tions of the child and the sociological factors in the environment. In
an attempt to bridge the gap between these two approaches, the
Bureau conducted a conference of experts from both fields. A report
of this conference for use by research workers is in preparation.
368636—56——_5
58 Department of Health, Education, and Welfare, 1955
be NS ts finches Micha ee Ete
Statistical reporting of State expenditures and services under the
grant-in-aid programs was improved. A new report on maternal
and child health services was developed. Special report forms have
been developed which will provide an unduplicated count of the num-
ber of children served by public child welfare agencies annually, data
on persons granted educational leave from public child welfare pro-
grams, and information on the professional training of child welfare
workers in the State programs. A reporting system to provide more
accurate data on juvenile court cases has been initiated.
As part of its research interpretation activities, the Bureau pub-
lished Zhe Adolescent in Your Family and a revised edition of Infant
Care and proceeded with a revision of Your Child From One to Sia.
Two supplements of Research Relating to Children were issued to
help investigators in the field of child life keep informed about
studies being conducted in their areas of special interest. More than
1,000 individual letters were written in reply to personal inquiries
concerning a variety of problems relating to children.
The research staff provided technical consultation requested by
State health departments on studies in areas such as evaluation of
child health conferences, health records for children of agricultural
migrants, maternal and infant mortality, pregnancy, hospital care of
premature infants, use of vital records, and fetal and neonatal wastage.
State welfare departments and voluntary organizations were as-
sisted in studies on such problems as unit costs in child placement, in-
dependent adoptions of children, delinquency prevention, training
school staff development, drug addiction among juveniles, and com-
munity services for children.
MATERNAL AND CHILD HEALTH SERVICES
All the States, the District of Columbia, Alaska, Hawaii, Puerto
Rico, and the Virgin Islands receive Federal funds to extend and
improve services for promoting the health of mothers and children.
The State maternal and child health agencies report that increases
occurred from 1953 to 1954 in most maternal and child health services
provided. The number of expectant mothers receiving services at
prenatal clinics increased from about 178,000 in 1958 to 192,000 in
1954. Mothers receiving postpartum medical examinations also
increased.
Well-child clinics provided services for about 1 million infants and
preschool children in 1954. One-and-a-half times that number re-
ceived nursing service through State maternal and child health pro-
grams. About 21% million examinations by physicians and slightly
over 3 million dental inspections were provided to school children,
who also received over 2 million home and office nursing visits. More
than 2 million children were given diphtheria immunizations and
Social Security Administration 59
about the same number received smallpox immunizations in 1954.
Various other services were also provided to mothers and children.
During 1955 the Bureau analyzed the total expenditures of com-
bined Federal, State, and local funds for the maternal and child
health programs in fiscal 1954. This was of particular interest be-
cause, for the first time, the States reported the estimated total cost of
the program. In previous years, reporting had been limited to ex-
penditures of Federal and of legally required matching funds. Total
maternal and child health expenditures for 1954 amounted to over
$538 million, or more than 214 times the Federal and required matching
funds reported in 1953.
To better prepare health personnel for their maternal and child
health programs many States carried out institutes and other special
training projects. In fiscal 1954, the State agencies spent almost
$250,000 for training programs to improve the skills of professional
personnel in the maternal and child health field. In addition, special
projects having training as the major objective were maintained by
a quarter of the States, with the help of Federal funds. For example:
the California State Department of Public Health with the School
of Social Welfare of the University of California established scholar-
ships and an internship program for medical social workers interested
in public health and medical care programs; the Massachusetts De-
partment of Public Health and the Harvard School of Public Health
held a 2-week institute on child growth and development for medical
social work teachers; and the special project at the Homer Phillips
Hospital in St. Louis for improving training in pediatrics for Negro
physicians became a reality. |
Increased regional interest in care of the premature infant has
developed since Colorado initiated a one-day postgraduate institute
program on care of premature and newborn infants for physicians,
public health nurses, hospital nurses, and hospital administrators.
The team has presented six such programs this year in Colorado and
Wyoming. Requests for next fiscal year have been received from other
areas in Colorado, Wyoming, Idaho, New Mexico, and Nebraska.
The premature institute program conducted by the Cornell-New
York Medical Center continues to prove a popular training oppor-
tunity for both physicians and nurses. A total of 109 teams coming
from 24 States and Hawaii has attended the institutes between 1949
and 1954.
The following publications relating to maternal and child health
were prepared and/or published during the year: Medical Social
Service for Hospitalized Children; Children’s Shoes and Footwear;
Nutrition and Health Growth; Your Premature Baby; and The
Child With Rheumatic Fever.
60 Department of Health, Education, and Welfare, 1955
Or
The Bureau sponsored two conferences on Health Services and
Juvenile Delinquency which brought together workers concerned with
the various facets of the problem of juvenile delinquency.
CRIPPLED CHILDREN’S SERVICES
All the 53 States and Territories, with the exception of Arizona,
are participating in the crippled children’s program. The expendi-
tures of Federal, State, and local funds for this program for the
fiscal year 1954, totaled more than $36 million, of which $11.1 million
represented Federal funds. The objective of these programs is to
locate children in need of care and provide the means of restoration
through diagnosis, medical and surgical treatment, and alleviation
of unfavorable social and psychological influences which contribute
toward the degree and duration of the disability.
In 1954 an estimated 271,000 children—more children than in any
previous year—received physicians’ services from State crippled
children’s agencies. The 1954 total for children served represents an
8-percent increase over 1953 and an increase of 26 percent since 1950.
Substantial gains were reported in the number of children receiving
clinic service (an increase of 9 percent) and in the number receiving
physicians’ services through home or office visits (an increase of
almost 18 percent). Children served in clinics numbered 221,000 and
constituted more than four-fifths of all children under the program;
about 48,000 children received physicians’ services through home or
office visits. Hospital inpatient care was provided to over 48,000
children.
State crippled children’s agencies are broadening their programs
to include more kinds of handicapping conditions and are experiment-
ing with new types of services. A notable example of this is new
approaches to the preschool blind child. The Michigan Legislature
has approved a special project of the State department of health to
provide more extensive services for preschool blind children and their
parents. Indiana is holding an institute for parents of preschool
blind children.
There is increasing interest by the State crippled children’s agencies
in the care of children with amputations. A team for care of these
patients has been trained at Duke University and another qualified
team is at work at the new rehabilitation center at the University of
Louisville. Plans have been made for facilities for amputee children
in West Virginia. At Grand Rapids, Michigan, a midwestern amputee
training center is opening to serve handicapped children from nearby
States. Plans have been worked out cooperatively with the Army
Prosthetic Research Laboratory for the production of the improved
ARRL hand in children’s sizes. Hands, mechanisms, and gloves will
be produced and paid for in Michigan and will be available to child
Social Security Administration ’ 61
amputees in other States. A service for children requiring upper
extremity prosthesis has been established in Los Angeles which will
serve children from other States as well as California’s own.
CHILD WELFARE SERVICES
Over 280,000 children were receiving child welfare services from
State and local public welfare agencies according to a cross-section
count on the day of March 31, 1955, as reported to the Bureau. In
the 50 States and Territories reporting, 40 percent of the children
receiving services were living with their own parents or relatives, 42
percent were in foster family homes, and 18 percent were living in
institutions or elsewhere.
In its child welfare services the Bureau consults with State public
and voluntary agencies in planning and operating their child welfare
program. It also administers the grant-in-aid funds for child welfare
services and develops guides, recommendations for practice, and infor-
mational materials in relation to the child welfare program as a whole
and for specialized services, such as social services to children in their
own homes, homemaker services, services to unmarried mothers, and
foster family and group care programs.
The marked increase in child population gives all aspects of devel-
opments within the child welfare program added importance. The
past year has seen some basic changes in administration in several
States. Connecticut, which has had a State-operated program for
children under 6, enacted legislation to bring responsibility for the
care of “neglected and uncared for” children over 6 years of age into
the same program. Kentucky, Maryland, and Pennsylvania have con-
solidated the various statewide public services for children in one
program within the public welfare department. ‘Tennessee has given
permanent status to the State Commission on Youth Guidance whose
early work resulted, this year, in a completely new juvenile court law.
Many State legislatures are showing a greater awareness and con-
cern over the need for increased child welfare funds and are making an
effort to find more adequate revenue. Connecticut, New York, Penn-
sylvania, and Vermont are greatly expanding services and are recruit-
ing additional qualified staff. Michigan has succeeded in legislative
efforts to provide grant-in-aid State funds for foster home care to
counties on an equalization basis, and both Alabama and Florida are
increasing their State funds for child welfare.
Nationwide shortages in personnel, affecting all professions, are
reflected in social work. Lack of staff and turnover continue to be out-
standing problems for State agencies and all groups interested in
child welfare. The Council of Social Work Education, the schools
of social work, State and local departments of welfare, and Federal
agencies are working together to enrich staff development programs
62 Department of Health, Education, and Welfare, 1955
decd eS ceca a acca NE I
as a means of developing the competence of existing workers. The
States are focusing on increasing supervisory and consultant skills.
The Bureau has been helping States strengthen the work of their staffs
in casework practice, supervision, policies, procedures, and attitudes
through institutes and consultation. Educational leave, made possible
through the use of Federal child welfare funds, continues to be a
mainstay for the States in developing staff competence. |
Among new State projects financed by child welfare services funds
are: strengthening of the adoption program under public auspices in
Vermont; a forestry camp for older delinquent boys in Maryland;
four additional child welfare workers in Cook County, Illinois, to
strengthen the public social services with respect to independent place-
ment of children.
Cooperative work with other agencies within the Social Security
Administration has included Bureau participation on several inter-
bureau committees. These include: the Ad Hoc Working Group on
Guardianship with the Bureau of Public Assistance and the Bureau
of Old-Age and Survivors Insurance and the interbureau Committee
on Common Social Welfare Matters which includes representatives of
the Office of the Commissioner in addition to the Bureaus named
above.
The Children’s Bureau continued its joint planning with the Bu-
reau of Public Assistance on services to children in aid to dependent
children families. The document prepared in draft last year was
discussed with State agency staff members in conferences under the
cooperative leadership of regional child welfare and public assistance
representatives.
There have been other evidences of progress in the provision of
services to children in their own homes. Massachusetts has passed
basic legislation for the protection of dependent and neglected chil-
dren, with a declaration of policy toward the strengthening and en-
couragement of family life. The southeastern States are proud of
their high percentage of children receiving public casework services
in their own homes rather than in institutions or foster homes. Many
States are voicing a realization that, if social services for children were
adequate, more children could remain in their own homes and delin-
quent behavior might be greatly reduced.
Social agencies are giving increased attention to those children
whom neighbors, the police, and others report for serious abuse or
neglect and children whose families may, at first, be reluctant to take
advantage of community aids in times of trouble. In addition, special
projects to identify and plan for the hard core problem families in
the community have been initiated in San Mateo County, California;
St. Paul, Minnesota; Washington County, Maryland; and St. Louis
and Kansas City, Missouri.
MES en! eee a ee a ee Oe ee eg ee Tek ee ae IE
— = =
Social Security Administration 63
Homemaker service is provided by 104 agencies in 74 cities in 29
States and Puerto Rico. Of these, 83 are voluntary and 21 public.
A great many are for services to the aged but a number are devoted
to children and their families.
Unmarried mothers present a dual challenge for the Bureau and
the State and voluntary child welfare agencies. In the first instance,
over one-third of these mothers are themselves adolescents and in
need of protection and guidance. Secondly, the babies need to be pro-
tected from the special hazards which confront them. The Bureau
is taking leadership in exploring the extent of the problem and the
contributions which the several professions of law, medicine, and
social work can make in safeguarding the mother and child. Bas-
ically, the need is for adequate medical, social, and legal services
available to the mother under conditions she can accept.
The spotlight has been on adoptions with their tremendous increase
from around 16,000 in 1934 to around 95,000 in 1954, approximately
half of these being with nonrelatives. 'The National Conference on
Adoptions, held in Chicago on January 26-29, 1955, under the
auspices of the Child Welfare League of America and the exploration
by the Children’s Bureau of the “black market” in babies have con-
tributed to nationwide thinking. In June 1955 the Children’s Bu-
reau called a conference of 31 national agencies and organizations
directly concerned with the three parties to adoption—the child, his
natural parents, and the adoptive applicants. The Bureau has also
been working cooperatively with Federal agencies having statutory
responsibility for intercountry adoptions and for bringing foreign
children into the United States for adoption and care.
Foster care of children, both in foster family homes and institutions,
is a heavy responsibility of State public welfare agencies both in terms
of numbers of children and expenditure of public funds. The num-
ber of children receiving foster family care under public agency
auspices increased from 49,000 in 1933 to 114,000 in 1952, or 138 per-
cent; during this same period, the Nation’s child population increased
14 percent. The majority of the children receiving foster care are
cared for in foster family homes. About 56,000 additional children
are estimated to be in foster family care under the auspices of volun-
tary child welfare casework agencies. An important trend in group
care is the development of small group homes in the community for
adolescents who cannot take root in foster family homes and children
who need temporary shelter. Specialized group facilities are also
being developed for emotionally disturbed children.
JUVENILE DELINQUENCY SERVICE PROGRAM
For the sixth consecutive year there has been an increase in the num-
64 Depariment of Health, Education, and Welfare, 1955
oe cn ee
ber of delinquency cases reported by juvenile courts. Public interest
in the problem of juvenile delinquency remains at a high level. News-
papers continue to devote considerable space to the problem, and addi-
tional funds were provided by Congress to permit the Senate sub-
committee to continue its investigations of juvenile delinquency.
Evidence of this general interest is also reflected by activities taking
place in the States. In at least a third of the States some action at
the State level relating to delinquency has been taken. This has taken
the form of new legislation, either relating to the juvenile court
statute or the statutes relating to the administrative structure of State
agencies providing service to delinquent children, or both, or in the
form of studies or surveys of State services for delinquent children.
For the fiscal year 1955 the Congress made a supplemental appro-
priation of $75,000 to enable the Bureau to expand its services in the
field of juvenile delinquency. On October 6, 1954, the Secretary of
the Department authorized the creation of a Division of Juvenile
Delinquency Service in the Children’s Bureau.
The primary responsibility of the new Division is to provide tech-
nical consultation to States and communities relating to the following
types of service or care: police work with juveniles; courts and proba-
tion services; institutional care for delinquent children including
training schools, forestry camps, and detention care; legal aspects of
delinquency including legislation, community coordination, and plan-
ning for the prevention, control, and treatment of delinquency; group
work activities with potentially delinquent gangs; and training pro-
grams for personnel, professional and nonprofessional, working with
delinquent youth.
Working relations have been established by this Division with many
national organizations concerned with juvenile delinquency, as well
as with the several Federal agencies carrying some responsibility for
its prevention, control, and treatment. In response to State and local
requests, consultation has been provided in the areas of training
schools, juvenile police services, statewide surveys, State legislation,
juvenile courts, and the training of institutional, probation, and police
personnel.
The major attention given by the Bureau over the past year in the
field of juvenile delinquency is reflected in 9 publications on the sub-
ject. Six new bulletins issued were: Training Personnel for Work
With Juvenile Delinquency; Parents and Delinquency ; The E'ffective-
ness of Delinquency Prevention Programs; Tentative Standards for
Training Schools; a directory of Public Training Schools for De-
linquent Children; and a report on the Secretary’s National Con-
ference on Juvenile Delinquency held in June 1954. Three more
bulletins in preparation were: a revision of Some Facts About Jwvenile
Delinquency; a bibliography on Juvenile Delinquency: Practice and
Social Security Administration 65
Research; and a report on the Bureau’s conference on Health Services
and Dissocial Behavior.
The Special Juvenile Delinquency Project, which was supported
by voluntary organizations and foundations and closely coordinated
with the Bureau, was dissolved in July 1955.
INTERNATIONAL COOPERATION
The international program has moved along this year with no
radical internal changes in policy or administration. The trend
toward increase in the training load in the health field has continued—
the Foreign Operations Administration group coming from the less
developed countries and the World Health Organization group from
both highly developed and less developed countries. In the FOA
program in both maternal and child health and social welfare, the
grants generally have been for 12 months with 8 or 9 months for
academic training in a school of public health or social work, or for
graduate work in a school of medicine. The WHO fellows, in general,
have been highly qualified persons who have come for a few months
of observation of new developments in their fields.
During the year, training programs have been planned for 69 long-
term trainees and observers and 133 short-term visitors. Of the 69
long-term trainees and observers, 36 were in the health field as follows:
maternal and child health 17, pediatrics 6, obstetrics 3, gynecology and
obstetrics 2, nursing 2, other 6; 25 were in child and youth welfare
as follows: group work 5, child welfare 5, juvenile delinquency 8,
other 7; 8 were in medical social work.
The child health and welfare specialists recruited and back-stopped
by the Bureau are contributing to the programs in six countries. The
Maternal and Child Health Demonstration in Samawa, Iraq, continues
to increase. The Government in Iraq has constructed 3 new buildings
on the grounds to handle the increasing number of patients and
trainees.
In Egypt the major responsibility of the American maternal and
child health physician has been the development of a rural health
demonstration with special emphasis on maternal and child health
at the village of Shubra Mant, near the Pyramids. Health visitors
are being trained for work at the new center.
The medical social consultants, working in El Salvador and Pan-
ama, have turned over to local medical social workers the hospital
social service units which they had initiated. They are now function-
ing on a truly consultant basis to the medical social workers in the
several hospitals, to hospital administrators, and to health centers.
They are active also in the field of social work education and have
had teaching responsibilities in connection with the schools of social
work in each country.
66 Department of Health, Education, and Welfare, 1955
OO eee
In Mexico the American consultant nurse-midwife has been work-
ing with other nurses on nursing curricula at schools in various parts
of the country and has given assistance in the organization of a new
division of nursing in the Mexican Ministry of Health and Welfare.
She and an American physician were loaned to Uruguay for 2 months
when that country had the most severe polio epidemic in its history.
In February the Director of the Division of International Coopera-
tion attended the tenth Pan American Child Congress in Panama as
a member of the United States delegation. She also attended the
technical conference of Public Health Chiefs of U. S. Operations
Missions for the Near East, South Asia and Africa, and the Far East,
which was held in New Delhi, India, from February 22 through
March 7. She visited the All India School of Hygiene and Public
Health in Calcutta. From there she went to Iran, Pakistan, Iraq,
Lebanon, Egypt, and Libya, as a consultant on maternal and child
health activities of the Foreign Operations Administration program
in these countries.
The Chief of the Bureau serves under Presidential appointment
as United States representative on the Executive Board of the United
Nations International Children’s Fund (UNICEF). In May 1955,
she was a member of the United States delegation to the World Health
Organization Congress in Mexico City.
Federal Credit Unions
During the fiscal year ended June 30, 1955, the aggregate assets of
all Federal credit unions exceeded $1 billion for the first time. The
program was 21 years old on June 26. On June 30th, there were 7,562
units in operation. ‘Their 3.8 million members owned assets totaling
$1.1 billion, of which $767.7 million consisted of loans outstanding to
members. Federal credit unions were operating in Alaska, Hawaii,
the District of Columbia, the Canal Zone, Puerto Rico, the Virgin
Islands, and in each of the 48 States. About 83 percent were serving
employee groups in commerce, industry, and government—local, State,
and Federal; 15 percent were serving associational groups such as
labor unions, churches, and fraternal organizations; and 2 percent
were serving residents of small rural communities or residents of well-
defined neighborhood groups in urban areas. About two-thirds (67
percent) of those operating on June 380 had assets of less than $100,000,
and more than half (58 percent) were chartered after January 1, 1947.
Between July 1, 1954, and June 30, 1955, the number of operating
Federal credit unions inereeee 572 or 8. 2 percent; membership in-
creased 358,378 or 11.2 percent; total assets increased $203 million or
22 percent; and amount of loans outstanding increased $145 million
Social Security Administration 67
or 23 percent. Outstanding loans to members accounted for 68.4 per-
cent of total assets at the end of fiscal year 1955 as compared with 67.8
percent at the end of fiscal year 1954.
Each Federal credit union is a separate corporation. Each is man-
aged and operated by officials elected by and from the group it was
organized to serve. The field of membership of each unit is specifi-
cally defined in its charter, and the Federal Credit Union Act specifies
that it may provide cooperative thrift and small-loan services only
for its members. The Federal Credit Union Act specifies the maxi-
mum size of a loan that may be made to a member ($200 or 10 percent
of the credit union’s paid-in and unimpaired capital and surplus,
whichever is larger) ; the maximum loan maturity (36 months) ; and
the maximum rate of interest (1 percent per month on the unpaid
balances, inclusive of all charges incidental to making the loan). The
treasurer of a Federal credit union is the only elected official who may
be paid for his services to the credit union. His compensation, if any,
must be authorized by the members. Although each unit is authorized
to borrow from any source up to 50 percent of its paid-in and unim-
paired capital and surplus, borrowing has not been an important source
of capital for most Federal credit unions. Funds used to make loans
to members are the accumulated savings of members in their credit
union. Such savings are called “shares” and are risk capital in the
corporate sense of the term.
Program Operations
The Bureau of Federal Credit Unions grants charters to groups that
voluntarily apply and are determined to be eligible and qualified under
the terms of the Federal Credit Union Act. The Bureau does no pro-
motional work; information and assistance is furnished only upon re-
ceipt of a bona fide request. Interest in the organization of Federal
credit unions is stimulated by the Credit Union National Association,
a nationwide voluntary organization, through advertising and through
the efforts of its staff of field men. State credit union leagues, which
are voluntary associations of credit unions on the State level, also
actively promote and assist in the organization of new credit unions.
In an increasing number of localities volunteers, usually officials of
operating credit unions, are generating interest in the establishment of
Federal credit unions. Many assist groups to apply for charters and
later follow through with the instruction of the newly elected officials.
In addition, new credit unions are established through the efforts of
persons who learned about these self-help organizations at their pre-
vious places of employment. During the year, the Bureau granted 794
charters to groups that were found after investigation to be eligible
and qualified.
68 Department of Health, Education, and Welfare, 1955
88 Ee a
A complete set of manuals is furnished to each newly chartered
Federal credit union, and, when necessary, instructions and assistance
in conducting the organization meeting are given by one of the Bu-
reaw’s field examiners. In a number of States, Credit Union League
personnel and volunteers are providing personal instructions for the
officials of new credit unions. In fiscal year 1955, less than 1 percent
of the official time of Bureau examiners was devoted to organiza-
tion work and to the initial instructions of officers, directors, and
committeemen.
In fiscal year 1955, 6,716 examinations of Federal credit unions
were completed by the Bureau’s staff. This was an increase of 425
over the number completed during fiscal year 1954. A total of 24,812
man-days was devoted to the making of these examinations for an
average of 3.694 days per examination. The average time for the
6,291 examinations completed in fiscal year 1954 was 3.560 days. The
average assets of those Federal credit unions whose examinations were
completed in 1955 were $131,314 as compared with $119,692 for those
completed in 1954. Of the examinations completed in 1955, 66 (or
about 1 percent) were in cases of actual or suspected defalcations.
These 66 examinations accounted for 5.4 percent of the total field ex-
aminer’s time devoted to examinations during the year. The corre-
sponding ratios for fiscal year 1954 were 1.2 percent and 4.6 percent,
respectively.
At the end of fiscal year 1955, the Bureau had a budgeted staff of
238—24 departmental and 214 field. At the end of the previous year
there were 23 departmental positions and 195 field positions provided
in the budget. Recruiting for field examiner positions during the
year proved to be more difficult than in prior years owing to the
relative shortage in the available supply of trained accountants to
meet the demand for such trained persons by Government agencies,
private industry, and public accounting firms. Toward the end of
the fiscal year the Chief of Field Operations worked out, with the
assistance of the Bureau’s Regional Representative in Chicago and
in New York City, a procedure for direct recruiting of graduating
seniors of colleges and universities. The experience gained and con-
tacts made are expected to be even more helpful in the future than
they were this year.
Fiscal year 1955 was the second year that the Bureau’s operations
were financed entirely by fees collected from Federal credit unions.
The Federal Credit Union Act specifies four kinds of fees and
provides that the revenue from these fees shall be used to defray the
costs of administering the law. A charter fee of $5 and an investiga-
tion fee of $20 are paid by each group when it makes application for
acharter. For each calendar year after the year in which its charter
is granted each Federal credit union pays a supervision fee the
SATUS:
oe ee
ee en ee ee
Social Security Administration 69
amount of which is determined by the amount of its assets as of Decem-
ber 81 in accordance with section 5 of the act. The fourth fee is paid
to the examiner at the conclusion of the examination. It is computed
in accordance with a schedule fixed by the Director in conformance
with the act and regulations published in the Pederal Register. The
schedule in effect during fiscal year 1955 was $56 per examiner day
or 50 cents per $100 of the Federal credit union’s assets as of the
effective date of the examination, whichever was lower, with a mini-
mum fee of $25 per examination, except that no fee was assessed for the
first examination made within 1 year after the charter was issued.
Revenue from these fees totaled $19,850 for chartering, $335,774.21
for supervision, and $1,154,519.95 for examinations during fiscal year
1955, as compared with $21,575, $277,619, and $993,596, respectively,
during fiscal year 1954.
Strengthening the Program
The growth in numbers and size of Federal credit unions is an
important factor in the administration of the Bureau’s program re-
sponsibilities. Solutions to new problems must be developed, trends
must be studied, and probable developments anticipated in order that
the necessary changes in procedures can be ready for installation at
the appropriate time. \
Manuals and instructional materials furnished to the officials of
Federal credit unions are revised from time to time to keep them up
to date and pertinent. Advice and suggestions of the operating offi-
cials, of the field examiners, and of the leaders of the organized credit
union movement are solicited. This procedure has fostered good co-
operation with instructions issued by the Bureau and has been of
material assistance in the development of practical aids to credit union
operations. ‘This procedure of proven value is being continued.
An integral part of each examination is the instruction of the Fed-
eral credit union officials. Since these instructions can be and are
geared to prevailing or anticipated conditions in the credit union con-
cerned, the examination program is a progressive rather than a static
influence on the development of sound credit union service in the
Nation. The knowledge this experience gives the field examiners is
a valuable resource in keeping the Bureau’s policies and regulations
in tune with the times.
The Bureau is continuing efforts to collect and maintain basic sta-
tistical data on Federal credit unions and to encourage research by
graduate students and faculty members of colleges and universities in
this field. The results of these efforts will provide the means for
detecting need for change and for evaluating proposed legislation,
proposed amendments to published regulations, and proposed revi-
sions of manuals for Federal credit union officials.
70 Department of Health, Education, and Welfare, 1955
ee ee
During the fiscal year, after considerable study and analysis, regu-
lations prescribing minimum standards as to amount and type of
surety-bond coverage for officials and employees of Federal credit
unions were promulgated and published in the Federal Register.
These regulations implemented the amendment to the Federal Credit
Union Act approved during the second session of the Eighty-third
Congress to clarify provisions as to the authority of the Director to
specify minimum surety-bond standards.
Responsibility for the supervision and examination of credit unions
chartered by the District of Columbia was transferred to the Bureau
during fiscal year 1955 by the provisions of Public Law 656, enacted
by the Kighty-third Congress.
OTHER SOURCES OF SOCIAL SECURITY INFORMATION
GENERAL
Social Security Bulletin—the official monthly publication of the
Social Security Administration, available through the Superintendent
of Documents, U. S. Government Printing Office, Washington 25,
D.C. An annual statistical supplement, with calendar-year data, is
included in each September issue.
Selected Social Security Research Reports—a list of reports of the
Division of Research and Statistics, Office of the Commissioner, in-
cluding selected Research and Statistics Notes, available through the
Director of the Division.
Old-Age, Survivors, and Invalidity Programs Throughout the
World, 1954, Division of Research and Statistics, Report No. 19.
Social Workers Abroad Assess Their T'raining in the United States,
April 1955, International Service Office, Office of the Commissioner.
OLD-AGE AND SURVIVORS INSURANCE
The Minimum Benefit Under Old-Age and Survivors Insurance—
A Report on a Study Called for by Public Law 761, 83rd Congress,
1955, available through the Bureau of Old-Age and Survivors
Insurance.
Federal Old-Age and Survivors Insurance Trust Fund: Fifteenth
Annual Report. U.S. Board of Trustees of the Federal Old-Age and
Survivors Insurance Trust Fund. (S. Doc. 39, 84th Cong., 1st sess.)
Washington: U.S. Government Printing Office, 1955.
Actuarial Studies, Division of the Actuary, Office of the Commis-
sioner: Long-Range Cost Estimates for Old-Age and Survivors In-
surance, 1954 (No. 39) ; The Financial Principle of Self-Support in the
Old-Age and Survivors Insurance System (No. 40) ; Analysis of Bene-
fits, OAST Program, 1954 Amendments (No. 41) ; Present Values of
OAST Benefits in Current Payment Status, 1940-54 (No. 42); Esti-
Social Security Administration 71
mated Amount of Life Insurance in Force as Survivor B enefits Under
OASI—1955 (No. 48).
PUBLIC ASSISTANCE
Administrative Costs of Public Assistance, Variations Among
States, 1954. Public Assistance Report No. 25.
State Methods for Establishing Workload and Staffing Standards.
How They Do It Series, June 1955.
Kit on the Development of Manuals and Written Instructions for
Use in State Public Assistance Agencies, Part I, July 1955.
Recipients of Old-Age Assistance in Harly 1953, Part I, State Data.
Public Assistance Report No. 26, June 1955.
Aid to Dependent Children: Continuing Effect of the Requirement
That Law-Enforcement Officials Be Notified of the Furnishing of Aid
in Cases Involving Desertion or SONU July 1952-December
1953. June 1955.
Staff Participation in the E'valuation of a Policy on Case Recording.
Current Practices in Staff Training, No. IX, June 1955.
CHILD HEALTH AND CHILD WELFARE
For current reports, see the Children’s Bureau section of this Annual
Report.
Table 1.—Social Security Administration: Funds available and obligations in-
curred, fiscal years 1955 and 1954?
{In thousands; data as of June 30, 1955]
Funds available 2 Obligations incurred
Item
1955 1954 1955 1954
0 Ag a $1, 552, 994 | $1, 496, 414 | $1, 538, 748 | $1, 483, 196
PERADESIORSTRLCS 2 ee ooo 2-5 spc dos oct nek ccoeoecoccest 1, 447,000 | 1,428,000 |° 1, 453, 199: 1, 415, 420
EAUDNCASSIGUANCOl = aco aco Se anole ooke bocce ee osckece 1, 487,000 | 1,398,000 a 423, 943 1, 386, 931
ee ine ee
HIbOMHOMDIINGsa= eh s oe a 6, 467 , O61
Aid to dependent children..._--......-.....-.. 1, 437,000 | 1,398,000 |) 395° 933 347, 236
Aid to the nermanently and totally disabled - -- 81, 452 72, 423
Maternal and child health and welfare services- - --- 30, 000 30,000 29, 256 28, 489
Maternal and child health services__......_.---- 11, 928 11, 928 11, 919 11, 787
Services for crippled children.._.............--- 10, 843 10, 843 10, 614 10, 601
Child welfare services__........---------------- 7, 229 7, 229 6, 723 6, 101
mMoministrative expenses %:_...\ 0. 222.222. .-2 ea 85, 994 68, 414 85, 549 67, 776
Office of the Commissioner !_.._____.___-__-___----- 309 298 304 286
Bureau of Old-Age and Survivors Insurance 5_____. 81,020 63, 746 80, 688 63, 188
Bureau of Public Assistance__...........-.-----...- 1, 501 1, 551 1, 487 1, 529
Seman eesUPORN) ©. ei nk ce eee 1, 629 1, 525 1, 617 1, 521
Bureau of Federal Credit Unions..____-.-..___-__-- 1, 535 1, 294 1, 453 1, 252
1 Funds available and obligations reported by administrative agencies.
2 Funds made available by regular and supplemental appropriations, authorizations, transfers, allotments,
recoveries, and fee collections for services rendered.
3 Funds made available and obligations incurred for salaries, printing and binding, communications,
traveling expenses, and reimbursement items for services rendered to other Government agencies.
4 Appropriations by Congress from general revenues accounted for approximately 57 percent of the admin-
istrative expenses of the Office of the Commissioner in 1954 and 1955; balance from old-age and survivors
insurance trust fund.
5 For administration of the old-age and survivors insurance program, which involved benefit payments
of $3,275,000,000 in 1954 and $4,333,000,000 in 1955,
6 Includes’ expenses for investigating and reporting on matters pertaining to the welfare of children guthor-
ized by the act_of 1912, as well as expenses for administration of grants to States.
q2 Department of Health, Education, and Welfare, 1955
Table 2.—Financing social insurance under the Social Security Act: Contribu-
tions collected and trust fund operations, fiscal years 1953-55
[In millions]
Item 1955 1954 1953
Contributions collected under—
Federal Insurance Contributions Act 1_.2..-.2s222.---2 2. 3223_- $5, 087 $4, 589 $4, 097
Federal Unemployment-Tax sh ct 226222225 os. So a kee sel eee 279 285 Pure
State unemployment insurance laws 3 4_________-_.-------------. 1, 142 1, 246 1, 368
Old-age and survivors insurance trust fund:
Receipts; totals == 2. 52322 i ee ee ee eo ae ae ee 5, 534 5, 040 4, 483
‘Transters and appropriations. esos. 22s) aos a ee ee 5, 087 4, 589 4, 097
Interest and profits on investments 5__--__------------------ 448 450 387
Expenditures, total__---------- vak Af). 3 ee a ee ee 4, 436 3, 365 2,717
Monthly benefits and lump-sum payments ®______--..------ 4, 333 3, 276 2, 627
A dministration-2). 26 ees tek Sa ee ALE A See ee 103 89 89
“ASsets; end of yearsze et. Se 2os Ss ee Sn oe oe ae 21, 141 20, 043 18, 366
State accounts in the unemployment trust fund:
Receipts; totales 222 o 2. oe ee ee ee 1, 333 1, 454 1, 560
Deposits) 4 saa. 53. Uk 2s St RUSE CEE ae? St eee 1, 146 1, 246 1, 371
Interests 28 2 = ake a St oe ee ae ee ee 187 208 189
Withdrawal for benefit payments).-o- 2=f235_L._ 9S 2 23st ea 1, 760 1, 605 908
ASSCTS, CNG OMVGOle! . . abo eee once ee eee ne 7, 983 8, 409 8, 559
1 Contributions on earnings up to and including $3,600 a year in 1953 and 1954 and $4,200 a year beginning
Jan. 1, 1955. Contribution rate paid by employers and employees: 144 percent each in 1953 and 2 percent
each beginning Jan. 1, 1954. Contribution rate paid by self-employed: 2% percent in 1953 and 3 percent
beginning Jan. 1, 1954. Includes deposits by States under voluntary agreements for coverage of State and
local employees. Includes deductions to adjust for reimbursement to the General Treasury of the esti-
mated amount of taxes subject to refund on wages in excess of wage base.
2 Tax paid only by employers of 8 or more. Employers offset against this tax—up to 90 percent of the
amount assessed—contributions which they have paid under State unemployment insurance laws or full
amount they would have paid if they had not been allowed reduced contribution rates under State exper-
ience-rating provisions. Rate is 3 percent of first $3,000 a year of wages paid to each employee by subject
employer; because of credit offset, effective rate is 0.3 percent of such wages.
3 Contributions plus penalties and interest collected from employers and contributions from employees,
reported by State agencies.
, 4 Contributions and deposits by States usually differ slightly, primarily because of time lag in making
eposits.
5 For 1954 and 1955, includes interest transferred from the railroad retirement account under the financial
interchange provision of the Railroad Retirement Act, as amended in 1951.
6 Represents checks issued.
Source: Compiled from Monthly Statement of the U. S. Treasury, other Treasury reports, and State agency
reports.
Social Security Administration 73
Table 3.—Old-age and survivors insurance: Estimated number of families and
beneficiaries in receipt of benefits and average monthly benefit in current-
payment status, by family group, end of June 1955 and 1954
[In thousands, except for average benefit; data corrected to Nov. 25, 1955]
June 30, 1955 June 30, 1954
Family classification of beneficiaries Average Average
eee 00. 0 & Number| Number| monthly | Number| Number! monthly
of of bene- | amount of of bene- | amount
families | ficiaries per families | ficiaries per
family family
AR SSR EH c= U° ML TSadpen ed gn e 5 42e38u7,, 000, 0 |i. wees oe 4,690.2 | 6, 468.8 |---._-___-_
Retired) worker families. ...........-|--....--- 4,214 8.1.6, 4021-3: 2 See) ee 3 O19U4 4 54a. 6 | seer enee
RVOURe MOM yee ee er) en oe oe een 3, 067.4 | 3, 067. 4 $58.20 | 2, 545.4 | 2, 545.4 $49. 40
lcm tre ee 1, 962.0 | 1, 962.0 63. 70 | 1,669.9 | 1, 669.9 53. 80
LOGIE EL ek ae gi ve 1,105.4 | 1,105.4 48. 60 875. 5 875. 5 41.10
Worker and wife aged 65 or over___-_-_------ 1, 066.6 | 2, 183.2 102. 20 904.9 | 1,809.8 86. 30
Worker and wife under age 65 !______-___---- 4 -8 105. 00 .6 1 ay 95. 60
Worker and aged dependent husband_-.-_---- 9.2 18. 4 86. 50 7.3 14.6 75. 20
Weekorana Wenld 15.5 255 etek 10.0 20. 0 98. 70 9.2 18. 4 76. 00
Worker and 2 or more children_-_-_-__---_-__- 6.1 22.2 102. 20 5.8 20. 4 79. 40
Worker, wife aged 65 or over, and 1 or more
CHU neMeer seo a sce Pe oe So 1.0 3.0 123. 30 .8 2.6 98. 90
Worker, wife under age 65, and 1 child___-____- 34. 5 103. 5 119. 20 28. 5 85. 5 100. 70
Worker, wife under age 65, and 2 or more
Cri DO Me ee een ce gon 19.6 93. 8 112. 90 16.9 79.7 93. 40
DilnviVOGMaliliess= oo 2. oc ete cee LSI DE lee LUlye taeneee aoe. T1705 85) 1vs0l: 2: |e
INSCORUAUOWe tee to 2s. - 2 oe sb ole ka 688. 2 688. 2 46. 60 585. 1 585. 1 41.00
Aged dependent widower_--.--------------- Wy 1,2 40. 70 .9 .9 34. 40
Widowed mother only !_._.2*22._..-.....-... ies 155 48.10 2.0 2.0 45. 20
Widowed mother and 1 child__-_-__-___--___- 120.9 241.8 104. 90 118. 5 237.0 91. 50
Widowed mother and 2 children_____________ 84. 5 253. 5 132. 30 78. 5 235. 5 114. 50
Widowed mother and 3 or more children_-_.- 74. 5 349. 5 129. 20 68. 8 322. 6 111. 80
Divorced wife and 1 or more children_-_---_- ay. 4 124. 00 WY TES 50
UL GLDEG) GYS) Ayia se 2 ae Ee aa a 202. 3 202. 3 47. 90 175.5 175.5 42. 20
PIGIMILLeM etn foe eo ok ese 80. 8 161.6 81. 60 73.5 147.0 72. 20
55 (GENIN ROTEL any eal pe An an Remeil e 29. 5 88.5 100. 20 25.9 HSH 88. 30
ArOrimore COMuaTeN 4252.2 2525--~bteesen- 19.9 87.2 104. 80 19.1 83.0 92. 60
1 aged dependent parent____._----__-------- 22.3 22.3 48. 00 Zino 21.2 42. 60
2 aged dependent parents_._..-.._---------- 1.7 3.4 92. 60 1.6 3.2 81. 40
1 Benefits of children were being withheld.
3868636—56——_6
74,
Department of Health, Education, and Welfare, 1955
Table 4.—Old-age and survivors insurance: Number and amount of monthly
benefits in current-payment status at end of fiscal year 1955, and amount of
benefits paid in fiscal year 1955, by State
[In thousands, distribution by State estimated; corrected to Nov. 15, 1955]
Beneficiary’s State of residence
ET A Wail: Mee eo 6 ee ee eee
KMentuck y bins St S08 see enn Nees
Louielanacs ie fete nse a enee aceon
Wissotmni sss ee, Fe ee eee
INGWAJCLSCY 25 Se cc chee see etna ene ae
ING WoMOXICOL= =>) ot an ee eee eee
OTeSON a aoe eee oe eae ee
Pennsylvania isons se seca ee as ee es
SEUIOR CO ACO Re terete eae ne eee eee eae
Wermontenc 2 oot cee ee eee eee ee
ViInginig.ee see ne eee cn eee
1 Less than $500.
Monthly benefits in
ecurrent-payment
status, end of fiscal
year 1955
Number
Amount
Benefit payments, fiscal year 1955
Monthly | Lump-sum
i | a | | |
52. 2
82. 4
benefits payments
$4, 333, 148 | $4, 232, 609 $100, 539
50, 705 49, 487 1, 218
2,085 2,022 63
18, 346 17, 929 417
30, 235 29, 551 684
362, 502 354, 303 8, 199
34, 1838 33, 424 759
83, 422 81, 488 1, 934
10, 290 10,007 283
16, 229 15, 749 480
110, 775 108, 778 1, 997
51, 906 50, 350 1, 556
8, 886 8, 760 126
12, 994 12, 765 229
278, 588 271, 483 7, 105
124, 193 121, 454 2, 739
61,022 59, 745 1,277
44,199 43, 177 1,022
59, 223 57, 812 1, 411
42,118 40, 931 1, 187
34, 727 34,019 708
60, 077 58, 365 1, 712
199, 730 195, 607 4, 123
203, 390 198, 608 4, 782
76, 173 74, 588 1, 635
23, 450 22, 880 570
107, 437 104, 819 2, 618
14, 636 14, 327 309
27, 456 26, 906 550
4, 442 4, 298 144
22, 359 21, 921 438
184, 118 179, 742 4, 376
9, 089 8, 854 235
521, 563 508, 868 12, 695
58, 440 56, 944 1, 496
7, 165 6, 992 173
272, 105 265, 744 6, 361
41, 586 40, 604 982
55, 938 54, 882 1,056
376, 669 368, 058 8, 611
7, 478 7, 346 132
33, 459 32, 718 741
29, 107 28, 249 858
10, 244 10, 009 235
52, 770 51, 517 1, 253
126,731 |, 123, 310 3, 421
15, 416 15, 080 336
12,024 11, 827 197
106 106 (1)
63, 411 61, 685 1, 726
84, 540 82, 925 1, 615
55, 747 54, 719 1,028
107, 311 104, 965 2, 346
5, 728 5, 600 128
26, 625 26, 362 263
Social Security Administration rie
Table 5.—Old-age and survivors insurance: Selected data on benefits, employ-
ers, workers, and taxable earnings for specified periods, 1953-55
[In thousands except for average monthly benefit and average taxable earnings; corrected to Nov. 14, 1955]
Item 1955 | 1954 1953
Fiscal year
Benefits in current-payment status (end of period):
IS RMN SGT. es Go he 7, 563. 5 6, 468. 8 5, 573. 6
ee en een nee ee nro igs oa treme 4, 214.8 3, 519. 4 2, 977. 5
Wiles OleMSDaAn GS.) a. eo eee ee ee 1,131.3 959. 1 826. 6
5 as up lth glia il pe ea cea 1, 220.9 1, 111.9 1, 003.3
Wado waStOERWAGOWer S--- ole oc ee 689. 8 586. 3 499, 0
2 0 SS a Ge ale el a a 281. 2 267. 7 244. 8
ELC Ott G nee ee cerns ee endouec cowed weoew eu 25. 6 24, 4 22,5
Motalemonghiby amount. 2: 22 os Oe le Eee $384, 025 $278, 702 $232, 999
CONG NETS) = a pe a i gs ya ie Nine ee 257, 230 182, 334 150, 124
PaleOwt OF MISDaNG Sos. S222. ook bce ce nee 37, O11 26, 302 22, 050
io ee ne Nee aia 43, 730 34, 770 30, 541
RRM CIOW ON Se on com necateeasneanend 32, 150 24, 016 20, 332
oli | hE hain 12, 677 10, 249 9, 015
re ee ee 1, 226 1, 030 936
Average monthly amount
(ONS REG as Se es LA eR $61. 03 $51. 81 $50. 42
VAVTBLSPS) (0) 0 21 DOS). O1 1 610 EA pep i i ee 32. 72 27. 42 26. 68
ridge Sarees eee | kee RS NE 35. 82 $l, 27 30. 44
VIG WesOL VIC OWELSe- oo ee oe twa a nee ees 46. 61 40. 96 40. 75
Mother’s___-- IRE AI oe an a a me SR od 45. 08 38. 28 36. 82
TEYDENSYIG’ She, se Sa lg See SI 47. 86 42. 26 41. 68
Benefit payments during period:
ENP @vaU HT a1 B57" | BYSS CYS) 3 2 JA a a ee aa ee $4, 232, 609 $3, 185, 282 $2, 551, 224
O) dab creer ce Le ee bee 2, 802, 967 2, 068, 404 1, 624, 605
SHE SOFO) See aS ATTRA 5 A a ae ae a 428, 847 318, 614 252, 994
SUELO Eo a a ee 1, 000, 795 798, 254 673, 625
EOL || en eae re 100, 539 90, 175 76, 268
Estimated number of living workers with wage credits (mid-
point of period—Jan. 1):1
OUND ci ee a 95, 200 93, 600 91, 000
ener ee nr eres ere or 69, 800 70, 800 67, 700
Currently but not fully insured____..-.....---.--------_-- 600 2 2
(OTINERCTS ERY. 52, 5 sp epee ete he pana el ay eeilaetei arable ioe 24, 800 22, 800 23, 300
Estimated number of employers reporting taxable wages, 1st
QUATLOEOLlISCa sy Caress ce so ceseecesscesseteewecressenceeks 3, 700 3, 650 3, 663
Calendar year
Estimated number of workers with taxable earnings---_--.._- (4) 60, 000 61, 000
Estimated amount of taxable earnings. --.--_--..-.-..--.----- (4) $134, 000, 000 | $136, 000, 000
Awveracotaxapile earings... 2. ss ne a oe en -- (4) $2, 230 $2, 230
1 Estimates of insured workers have not been adjusted to reflect changes in insurance status arising from:
(1) provisions that coordinate the old-age and survivors insurance and railroad retirement programs and
(2) wage credits for military service. Estimates are only partially adjusted to eliminate duplicate count of
persons with taxable earnings reported on more than 1 account number. The effect of such duplication is
_ substantially less significant for insured workers than for uninsured workers.
2 All persons currently insured on these dates are also fully insured.
3 Rounded to nearest $10.
4 Not available.
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BEETS VW), me M5 oe SO 9 os I) oh i le a 107
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139
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2In addition to those provided for in day schools.
a
Office of Education 147
Approximately 60,000 public elementary and secondary classrooms
and related facilities were constructed in the United States during
the 1954-55 school year. It is estimated that the capital outlay
investment for these facilities was in excess of $2 billion. In spite of
this all-time high in school construction, the country still faces a large
school building program because of increasing enrollments, popula-
tion mobility, school district reorganization, and wide demands for an
extended and enriched program of education and community services.
The nationwide School Facilities Survey conducted by the Office of
Education revealed that States have projected their plans for meeting
school plant needs to the extent of 476,000 classrooms during a period
of five school years (1954-55 to 1958-59, inclusive), at an estimated
aggregate capital outlay cost of more than $16 billion, exclusive of
planned rehabilitation.
The primary source of school construction funds has been school
district bonds supported by local property taxes. There are trends,
however, toward school district reorganization and State aid for capi-
tal outlay which will broaden the fiscal base and improve methods of
financing school construction.
Planning school plants is becoming more and more a cooperative
procedure. School architects, administrators, supervisors, teachers,
pupils, furniture manufacturers, and lay citizens cooperate in plan-
ning school facilities. School buildings and equipment are thus be-
coming more functional and better adapted to educational require-
ments.
Specialists in curriculum, school buildings, and furniture and equip-
ment, in Federal and State governments and in colleges and universi-
ties, are assisting local school officials and architects in the initial
planning for the space required for different courses and learning
activities, the equipment needed for effective instruction, proper light-
ing for a variety of seeing tasks, and suitable heating, ventilating,
sanitation, and sound control. Final decisions on these matters, how-
ever, are made by local school officials, subject to State regulations.
School programs today include a variety of learning situations
which entail many activities and instructional materials. Such pro-
grams demand classrooms designed for multiple purposes. The trend
in elementary school planning is toward a self-contained classroom of
900 or more square feet with work counter, sink, toilet, storage com-
partments, chalk and tack boards, display cases, and movable furniture
and equipment. Such rooms are readily adapted to accommodate a
variety of activities. Secondary school plants are usually designed
with special classrooms for science, art, music, homemaking, business
education, crafts, and various types of vocational and prevocational
shops. The trend in secondary school planning, however, is toward
148 Department of Health, Education, and Welfare, 1955
some multi-use classrooms which will serve more than one specialized
subject area.
The shortage of teachers continued during 1954-55, and elementary
and secondary schools will need a total of 229,700 new teachers when
the schools open this fall. These teachers will be required (1) to
replace 91,200 emergency teachers; (2) to replace 83,300 qualified
teachers who will leave the profession; and (8) to provide the 55,200
teachers needed for the increase in enrollment. It is estimated that
25,000 of the emergency teachers will become qualified by the time
school opens. In addition, 95,186 teachers completed certification re-
quirements in 1955, but only 63,400 of these are expected to accept
teaching positions. With only 88,400 new qualified teachers entering
the profession, there will be a deficit of 141,300 teachers when schools
open in the fall. The 141,300 shortage will have to be made up by
more emergency teachers, by teachers returning to the profession who
did not teach during the last year, and by more overcrowding. The
figures given above do not include any teachers to reduce present
overcrowding nor to enrich the curriculum.
The annual estimates submitted to the National Education Asso-
ciation by the State departments of education showed an average an-
nual salary per member of instructional staff in 1954-55 of $3,932.
The average elementary school classroom teacher’s salary was $3,615 ;
among secondary school teachers the average was $4,194.
Supply and demand for elementary and secondary public and nonpublic school
teachers, 1955-56
Them, ik Spy hl!
Supply: secondary
Total teachers, 1954-56 *iuii_ Le lollo_l Ocul _ 1) eee 1, 201, 800
Less emergency teachers, 1954-55___-+_ +222 ssn s4_ cu ee 91, 200
Total qualified teachers, .1954-55_._.______________ 1, 110, 600
Less 7.5 percent turnover=—_-_ 0" 2 at oe ee 83, 300
Qualified teachers returning for 1955-56.__i._-L._-2 12.8 1, 027, 300
Emergency teachers qualifying for 1955-56___.__._____________ 25, 000
New supply of qualified teachers (79 percent of elementary and
56 percent of high school teachers trained in 1954-55)________ 63, 400
Total qualified, supply, 1955-56 Lonel ee elee Tee eee 1, 115, 700
Demand: |
Total teachers, 1954-55202 o2U on Pe Dee 1, 201, 800
Teachers needed to meet increase in enrollment in 1955-56 7____ 55, 200
Total demand, 1955-06__.-_.-. 1... 1, 257, 000
Shortage: of ‘qualified: supply_o<.cxes)_2i ne _ le ee | 141, 300
1See footnote 1, on following page.
Source: Office of Education Circular No. 417, Revised, and estimates for 1955-56 ;
and The 1955 Teacher Supply and Demand Report of the National Education Association.
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Office of Education 149
JUNIOR HIGH SCHOOL
During fiscal 1955 the staff of the Office of Education gave con-
siderable attention to the reorganization of secondary education and
problems associated with the junior high school. Studies indicate
that the reorganization of schools to include some form of Junior high
school has gone forward rapidly in recent years, especially since 1946.
The number of seventh- and eighth-grade pupils enrolled in the
secondary schools rose almost continuously from 142,000 in 1920 to
1,993,000 in 1952. During the same period, enrollments in these
grades in the 8 schools fell from 2,778,000 to 2,025,000. This drop
is due chiefly to the shifting of these grades to the new junior high
school forms of organization.
In 1920 there were less than 5 percent of the seventh- and eighth-
grade pupils in the reorganized schools; by 1952 this proportion had
risen to almost half (49.6 percent) of the total. The rapid increase in
total secondary school enrollments coupled with the reorganization of
secondary schools has necessitated the construction of many new
school facilities.
These developments have caused some educators to raise questions
concerning the junior high school as a unit in secondary education.
Has the junior high school been set up because of expedient ad-
ministrative and building considerations, or is it the best organization
to provide general education for early adolescents 12-15 years of age?
Does it clearly demonstrate superiority over the traditional 8-4 plan?
Have its purposes changed so much since its origin in 1909 as to
suggest that the junior high school needs a new redirection? These
questions have stimulated a surgence of professional interest in the
junior high school.
Because of the wide and growing interest in the junior high school,
the critical demands for more buildings for youth of this age group,
and the unavailability of recent data the office staff sponsored a
National Conference on Junior High Schools. An analysis was also
made of State department of education policies and regulations affect-
ing the junior high school. As a result of these activities several
national professional organizations and State departments of educa-
tion are now making studies of this important segment of secondary
education.
1The number of elementary and secondary school teachers in public schools, in the fall
of 1954, was 1,065,803 (Office of Education Circular No. 417 Revised). ‘To this must be
added the number in nonpublic schools (private and parochial), in model and practice
schools of colleges and universities, in residential schools for exceptional children, and
in schools operated under Federal auspices. The number of teachers in this group of
schools was estimated as 136,000, on the basis of 1 teacher to every 33 pupils—the ratio
prevailing in the Roman Catholic schools which enroll 88 percent of the pupils in this
group.
150 Department of Health, Education, and Welfare, 1955
hr haan rma en
EDUCATIONAL TV
At the beginning of fiscal 1955, there were 7 non-commercial edu-
cational television stations in operation. During the year, 1 of the 7
suspended operation pending reorganization, and 9 new stations went
on the air, bringing the total of the educational television stations
to 15. At the close of fiscal 1955, 11 additional stations were actually
under construction, 16 more had already received their construction
permits from the Federal Communications Commission, and appli-
cations for 18 more had been filed.
A look at the 15 educational TV stations in operation at the end
of fiscal 1955 reveals 5 distinct types of licenses. Six of the 15 are
owned and operated by State universities. Four stations are owned
and operated by non-profit educational television corporations formed
specifically to serve educational and cultural needs of all elements of
the population of the local metropolitan areas. Three of the stations
are owned and operated by State educational broadcast councils
financed from State appropriations. One station, KUHT of Houston,
is owned and operated by a city university, the University of Houston.
One station, WGBH-TV of Boston, is owned and operated by the
Lowell Foundation, an endowed foundation serving educational and
cultural needs of the Boston metropolitan area.
On the whole, educational television station development, already
involving an expenditure of more than $10 million for equipment
alone, is showing a decidedly healthy growth. Now that educational
station planners no longer feel themselves under compulsion to get
their stations on the air immediately, lest locally reserved educational
television channels be re-assigned for commercial use, more attention is
being given to planning educational program services, and to develop-
ing sound bases for financing station operating and programing costs.
In fact, the trend today seems to be to select and train the production
staff first, starting actual production over closed circuit facilities on
an experimental basis while funds for station construction and opera-
tion are being raised.
The growth of educational television development seems in no way
to have dimmed the interest of schools and colleges in radio broad-
casting. In the year just ended, some 30 new educational FM sta-
tions have gone on the air, bringing the total of non-commercial
educational radio stations in operation to 160.
EXCEPTIONAL CHILDREN
During the year, the Office of Education continued to give leader-
ship to the nationwide study on the Qualification and Preparation of
Teachers of Exceptional Children. A study was made of the distinc-
tive competencies needed by teachers of the blind, crippled, deaf,
gifted, hard-of-hearing, mentally retarded, partially seeing, special
Office of Education 151
health cases, socially maladjusted, and speech-handicapped. In-
cluded also was an evaluation of. the competencies needed by special
education personnel in colleges and universities, and in administrative
positions in State and local school systems.
Four publications have now come from the study and others are
nearing completion. The results of the study were presented at vari-
ous National, State, and regional meetings throughout the year. It
is anticipated that the findings will form the basis for improved
programs for exceptional children through the development of better
in-service and pre-service preparation of teachers.
CIVIL DEFENSE EDUCATION
A. delegation of authority by the Federal Civil Defense Adminis-
tration to the Department of Health, Education, and Welfare gave
the Office of Education the responsibility for planning, developing,
and distributing materials which will assist schools in teaching civil
defense skills, knowledge, and fundamentals of behavior during emer-
gencies. Contractual agreements were made with State departments
of education in Connecticut, Michigan, and California to establish
pilot centers for the development of civil defense instruction materials
for teachers in various subject areas and at all levels. The Office of
Education aided the State pilot center staffs by reviewing and evaluat-
ing technical reports developed by the Federal Civil Defense Admin-
istration and other government and non-government agencies.
ASSISTANCE TO SCHOOLS IN FEDERALLY AFFECTED AREAS *
A major activity of the Office during the 1955 fiscal year was admin-
istration of the grant programs authorized for those school districts
which have experienced a severe financial burden as a result of activi-
ties of the United States. The fiscal year 1955 was the fifth year these
programs, authorized by Public Laws 815 and 874 of the 81st Congress,
had been in operation. Public Law 815 authorizes financial assistance
for construction of school facilities needed to house increased school
enrollments resulting from new or expanded Federal activities, mostly
military installations. Public Law 874, the companion law, provides
Federal assistance for current operating expenses each year to take
the place of local revenues lost primarily because of the nontaxable
status of federally owned land on which the school children live or
on which their parents work.
Passage of these two Acts in September 1950 marked the first attempt
by the Congress to establish a uniform policy governing the allocation
of financial assistance to school districts seriously affected by Federal
1 For a more detailed discussion of the operations of this program under Public Laws 815
and 974 (81st Cong.), as amended, see Fifth Annual Report of the Commissioner of educa-
tion concerning the administration of Public Laws 874 and 815.
152 Department of Health, Education, and Welfare, 1935
a ne a a
activities and to place the administration of this program in one ad-
ministrative agency. The Laws also attempted to establish an objec-
tive method of determining the extent of the Federal financial burden
and the amount of Federal assistance to which each district was en-
titled. Accordingly, each Act established specific requirements for
eligibility, defined the categories of Federal impact for which payment
would be made, and included a formula for determining the amount
of assistance. In addition to grants to local educational agencies Pub-
lic Law 815 recognized the necessity for and authorized the construc-
tion of temporary schools in certain situations and the Federal con-
struction of schools on Federal bases where necessary in order best to
serve the children. Public Law 874 recognized the necessity for and
authorized the Commissioner of Education to arrange for providing
free public education for children living on Federal enclaves when
no State or local educational agency was responsible for or was able
to provide suitable education for such children.
The original Public Law 815 provided Federal assistance for in-
creases in school enrollment which resulted from Federal activities
which occurred from the beginning of World War II in 1939 to June
30, 1952. This program was extended in August 1953 by the passage
of Public Law 246 to provide for increases in school enrollment occur-
ring from June 30, 1952, to June 30, 1954. Karly in the 1955 fiscal year,
Congress again extended this program by the passage of Public Law
731 to provide for school enrollment increases occurring during the
period June 30, 1954, to June 30, 1956. An appropriation of $70 mil-
lion was made early in the 1955 fiscal year for allocation to projects
filed by June 80, 1954, and for completion of that program. In April
1955 Congress made available an additional $70 million for the first
year of the newly authorized program. ‘Thus, a major activity of the
Office during the year has been the analysis of applications submitted
for the new 2-year period, an allocation of funds to approved projects,
and the completion or moving toward completion of projects already
approved from prior years’ appropriations.
By June 30, 1955, a total of $585,000,000 had been appropriated for
construction of school facilities in federally affected school districts.
In addition, an estimated $230,000,000 had been added to the projects
from local funds. These funds were used or will be used to help build
2,700 school buildings in local districts and 134 federally constructed
projects located on 83 Federal installations. It is estimated that this
program will have helped provide approximately 25,000 classrooms
and related school facilities which will be sufficient to house an esti-
mated 750,000 children.
During the fiscal year, 2,831 school districts applied for assistance
under Public Law 874 for maintenance and operation of school plants.
Of these, 2,700 were determined to be eligible for approximately $75
Office of Education 153
million. In addition there were 31 federally operated on-base proj-
ects under the provision of section 6 of the Act. The eligible school
districts had an average daily attendance of 910,000 federally con-
nected children on which payments were authorized and an estimated
total attendance of over 5,500,000 pupils.
While Federal activities, particularly those connected with defense
contracts, have stabilized throughout the country there continues to be
a number of new Federal impact areas resulting primarily from new
or expanded Air Force installations, reclamation project activities, and
atomic energy projects. Continued construction of housing for mili-
tary personnel on or near military installations also increases school
enrollment in the Federal impact areas. Thus there was an increase
of 177 eligible school districts in the 1955 fiscal year over 1954 and
an increase of about 3 percent in the cost per pupil resulting in an
increase of approximately $10 million in the cost of the program.
Another major activity occupying the Division during the year was
securing compliance with the January 1954 order of the Secretary of
Defense that no school located on military installations could be oper-
ated on a segregated basis after the fall of 1955. There were 24
schools located on Federal property operated by local educational
agencies on a segregated basis during the 1954-55 school year. Com-
pliance with the order of the Secretary of Defense required ascertain-
ing whether local educational agencies operating on-base schools
could in the 1955-56 school year operate those schools on an integrated
basis or whether Federal operation under section 6 of the Act would
be necessary and, if so, preparing the necessary budgets and arrang-
ing for such operation.
Of the 24 schools located on Federal property 20 were federally
owned schools located on military installations and operated by local
educational agencies on a segregated basis during the 1955 fiscal year.
Four of these have been discontinued, 8 will be operated on an inte-
grated basis by local educational agencies in the 1956 fiscal year, and
8 will be operated by the Federal Government on an integrated basis.
The remaining 4 projects are locally owned schools located on prop-
erty leased by the local educational agencies from the Department
of Defense. ‘These schools will be operated on the same basis as are
other schools in these districts.
VOCATIONAL EDUCATION
The Office of Education administered approximately $31,000,000
of Federal vocational education funds appropriated for allotment to
the States and Territories for the fiscal year ending June 30, 1955.
This was an increase of $5,000,000 over the previous year. The addi-
tional funds were used primarily to extend the program to communi-
ties not previously having vocational programs.
368636—56——11
154 Department of Health, Education, and Welfare, 1955
en UST Peco french or (Pie chat oe
The Assistant Commissioner for Vocational Education was made
an ex-ofticio member of the Federal Committee on Apprenticeship.
The Office participated in several Federal-State apprenticeship agency
joint conferences called by the U. S. Department of Labor. Closer
working relationships were established in the apprenticeship program
in the matter of understandings of the respective responsibilities of
this Office and these agencies in the gathering of statistics and the
development of programs of related instruction for apprentices con-
ducted by public schools.
A conference of State directors of vocational education was held to
consider policy matters in the administration of the total program of
vocational education. Areas studied included vocational guidance,
distributive education, home economics, trade and industries, and agri-
culture. The recommendations of the conference will be used as a
basis of future considerations of policy.
The Office also held a planning conference on research in agricul-
tural education in which recommendations made by the National Com-
mittee on Research in Agricultural Education were considered. As
a result, a comprehensive study is to be made of the Young Farmer
Program and a publication on the subject issued for use by vocational
leaders in agricultural education.
Staff members met with representatives of producers of both natural
and synthetic fibers to plan a training program in textile fibers for
salespeople employed in stores, including high school students enrolled
in cooperative distributive education programs.
The shortage of teachers of home economics persists although 7,693
persons were enrolled in college courses in 1954 preparing for the
teaching of home economics. The shortage is due to the facts that
home economics teachers marry after a few years of teaching and leave
the profession, and that programs of home economics are being estab-
lished in many more schools each year.
The shortage of coordinators of local cooperative programs in dis-
tributive education and persons qualified for State level positions in
the program has become acute. The shortage in this field is due in
part to the fact that increased Federal funds were available for 1955
following several years of decreases in Federal funds which resulted
in the curtailment of teachers and coordinator training programs in
some of the States.
The shortage of vocational agriculture teachers has become more
acute than at any time since World War II despite the fact that 3,479
persons were being trained by the colleges as such teachers. The
shortage in this field is due largely to the fact that most of the voca-
tional agriculture teachers are trained in the land-grant colleges
where they take military training and become reserve officers. After
serving several years, many go into other than teaching occupations.
Office of Education 7 155
Increased demand for agricultural college graduates by commercial
concerns and State and Federal agricultural programs also contributes
to the shortage.
LAND-GRANT COLLEGE AND UNIVERSITY FUNDS
Each year the Office of Education initiates certification as to each
State and Territory (1) whether it is entitled to receive its share of
the annual appropriations for the land-grant colleges and universities
and (2) the amounts it is entitled to receive. The certification for
the year ending June 30, 1955, for the Bankhead-Jones funds (annual
appropriations) amounted to $2,501,500 and that for the Morrill-
Nelson funds (permanent appropriation) amounted to $2,550,000, a
grand total of $5,051,500.
COLLEGE HOUSING PROGRAM
The Office of Education provided advisory service to colleges and
universities and the Housing and Home Finance Agency on new appli-
cations in the amount of $70,000,000 during fiscal 1955. These loan
requests are anticipated to provide residential facilities for 20,928
single students, 1,020 married students, and 323 faculty members.
The prevailing interest rate of 3.25 percent deterred many appli-
cants from completing loan requests and financing needed residential
facilities. Privately operated institutions used the program to a
greater extent than publicly operated institutions because the 3.25
interest rate is still favorable to the private college or university.
Publicly supported institutions tended either to delay construction or,
in some favorable instances, to secure loans at interest rates slightly
under the College Housing Program rate. Associations in higher
education continued to request lower interest rates, preferably under
3 percent, and a release of all remaining funds for immediate use.
Private investors continued to participate in the program. During
Fiscal 1955, individuals and syndicates are reported to have purchased
approximately $8,000,000 in college housing revenue bonds when
opened to competitive bids under the College Housing Program. A
few 40-year issues were sold to private investors, but the usual pattern
was that only the earlier issues were purchased by private investors.
ADULT EDUCATION
During the year the Office of Education gave recognition to the
rapidly growing movement of adult education by creating an Adult
Education Section. Its purposes are to: (a) provide consultative
services to State and local school officials, teacher-education institu-
tions, professional and lay organizations, and Federal agencies on
needs in and problems of adult education; (6) conduct and publish
156 Department of Health, Education, and Welfare, 1955
studies in the field of general adult education, including the education
of the aging and aged; (c) participate in conferences and workshops
on the various phases of adult education; and (d) establish and main-
tain cooperative relationships with professional and lay organizations
and voluntary agencies interested in the field.
INTERGROUP EDUCATION
The Office of Education cooperated actively with the National
Education Association and the American Teachers Association in
developing a packet of materials and a leader’s guide on intergroup
education for leaders of adult community groups. The purpose of
the packet and leader’s guide is to provide an overall orientation to
the several aspects of the problems involved in achieving improved
human relations. While the packet is concerned with the general
subject of intergroup relations, it will be found useful to persons
interested in the implementation of the Supreme Court’s opinion on
school segregation.
INTERNATIONAL EDUCATION
Education has an increasingly important role in international af-
fairs. First, it is one of the best ways to help people to become
acquainted with each other. Various cultural programs designed to
promote understanding seem to grow in scope and effectiveness with
each passing year. Secondly, education is a necessity for people who
are learning new technical skills needed to improve their standard
of living. Technical assistance to people less advanced mechanically
than sri ama is an increasingly important component of our foreign
policy, and is in fact a program of education.
Substantial funds of the United States and other governments are
supporting international educational programs, both on the country-
to-country and on the United Nations basis. Private organizations
also are investing large sums in educational enterprises designed to
increase international understanding, and to improve economic con-
ditions.
The Office of Education has a growing part in supporting many of
these programs, although it has direct operating responsibility for
only a small part of the Federal investment in international education.
The Office serves as adviser and agent for a number of Federal inter-
national activities, and also is frequently asked to provide advisory
services to numerous private organizations and individuals.
One evidence of the growing importance of education in relations
between nations is in the agendas of international conferences. The
Office has an increasingly important responsibility in advising the
Department of State concerning important educational issues, and
oO. a es a oe 7
Office of Education 157
in preparing position papers for the guidance of American delegates
to a variety of international conferences.
The new role of the United States in international affairs is reflected
in schools and universities by the need for new courses, the revision
of existing courses, and in a variety of research programs. Lay groups
and organizations are carrying on related activities.
The Office is asked advice concerning curriculum development for
children in elementary schools of the United States to help them
become acquainted with the peoples and cultures of other countries.
Secondary schools are experimenting with programs designed to stim-
ulate in young people an interest in, and a better understanding of,
current affairs. ‘Teaching about the United Nations and its specialized
agencies is another approach to international understanding. School
systems, State departments of education, private publishing com-
panies, and Government agencies are publishing bulletins, yearbooks,
and articles to assist schools in developing programs of international
understanding. ‘The Office serves a useful function in helping edu-
cators to avoid propaganda, and to develop a sound approach to
international education which is in harmony with our national interest.
Both Government and business are turning to the universities for
specialists in international affairs. Institutions of higher education
are providing more area programs, more facilities for overseas re-
search, and improved collections of source materials and training
for scholars specializing in international relations.
Exchange of persons programs sponsored by the United States
Government and by private organizations are bringing thousands of
students and educators from other countries to the United States, and
have greatly stimulated an interest in international education. Col-
leges and universities, State departments of education, thousands of
schools, private educational organizations, as well as community
groups and private citizens, have cooperated in providing for these
visitors educational experiences and an insight into American life
and culture. The opportunity to assist in this program has given
countless citizens of our country an opportunity to obtain firsthand
information about, and to develop a deeper understanding of, the
people and lands from which these visitors came.
In cooperation with the Department of State during the year 1954-55
the Office of Education arranged exchange and one-way teaching
assignments for 486 teachers and school administrators from the
United States and cooperating countries. In addition, 305 visiting
educators came on 6-month training grants under the Teacher Educa-
tion Programs.
During the 1954-55 school year the Office of Education continued to
work with the Foreign Operations Administration in the development
158 Department of Health, Education, and Welfare, 1955
of technical assistance programs of education in 34 countries. One
hundred thirty-four educators were recruited by the Office for appoint-
ment by the Foreign Operations Administration to serve in educa-
tional missions in these countries. Professional and technical con-
sultation was provided by the Office, and the Foreign Operations Ad-
ministration was advised on the development of university contracts
for carrying out assignments in education overseas. Under this same
program, 700 educators from more than 30 countries were brought
to the United States for training in a wide variety of fields to promote
their countries’ economic, social, and educational development.
Assistance was continued to university and college registrars, State
Boards of Licensure, and the U. S. Civil Service and other Federal
agencies in the interpretation of credentials for study in other coun-
tries, totaling 2,900 requests. The Veterans Administration also con-
tinued to call upon the Office for recommendations regarding the level
of instruction in certain courses offered by foreign schools for United
States war veterans.
The Clearing House in the Office of Education, established at the
request of the Department of State to maintain a file of information
concerning persons entering and leaving the United States under the
various Federal Government-sponsored exchange programs, including
that of the Foreign Operations Administration, increased its list from
15,000 to 21,000 individuals this year. To date, some 80 different statis-
tical studies have been prepared by the Clearing House for the Depart-
ment of State.
The Office of Education, through its Educational Materials Labora-
tory, has provided an opportunity for visiting educators from other
countries, as well as educators and laymen in the United States, to
examine representative textbooks and materials used in schools in this
country. In cooperation with specialists of the Office of Education,
it has assisted FOA missions, the United States Information Agency,
and Ministries of Education, in selecting texts and materials for use
in other countries. The Laboratory also maintains a permanent ex-
hibit of materials produced in the FOA missions and in connection
with fundamental education programs around the world.
There is a substantial and growing interest among American educa-
tors in international education. The success of these programs, both
governmental and private, results from the strong public support they
are receiving both in this country and abroad. There is a growing
belief that education is an effective means for achieving the foundation
of international stability and peace.
Office of Education 159
OTHER SOURCES OF INFORMATION
U. S. Government Films for Public Educational Use. Bulletin 1955, No. 1.
State Accreditation of High Schools. Bulletin 1955, No. 5.
Statistics of Land-Grant Colleges and Universities, Year Ending June 30, 1954.
Bulletin 1955, No. 8.
Summaries of Studies in Agricultural Education, Supp. No. 8. Vocational Divi-
sion Bulletin No. 256.
Statistical Summary, 1951-52. Chapter 1, Biennial Survey of Education in the
United States, 1950-52.
Statistics of State School Systems, 1951-52. Chapter 2, Biennial Survey of Edu-
cation in the United States, 1950-52.
Statistics of City School Systems, 1951-52. Chapter 3, Biennial Survey of
Education in the United States, 1950-52.
Statistics of Higher Education, 1951-52. Chapter 4, Section II, Biennial Survey
of Education in the United States, 1950-52.
Federal Government and States. Part 1, Education Directory, 1954—55.
Counties and Cities. Part 2, Education Directory, 1954-55.
Higher Education. Part 3, Education Directory, 1954-55.
Education Associations. Part 4, Education Directory, 1954-55.
Resident, Extension, and Adult Education Enrollment in Institutions of Higher
Education, November 1958. Circular No. 414.
Harned Degrees Conferred by Higher Education Institutions, 1953-54. Circular
No. 418.
Fall Enrollment in Higher Educational Institutions, 1954. Circular No. 419.
Engineering Enrollment and Degrees, 1954. Circular No. 421.
Current Expenditures per Pupil in Public-School Systems: Large Cities, 1953-
54. Circular No. 436.
Current Expenditures per Pupil in Public-School Systems: Small and Medium-
Sized Cities, 1953-54. Circular No. 488.
Statistics of Public Elementary and Secondary Education of Negroes in the
Southern States, 1951-52. Circular No. 444.
Salaries and Other Characteristics of Beginning Rural School Teachers, 1953-54.
Circular No. 446.
Statistics of Negro Colleges and Universities, 1951-52 and Fall of 1954. Circular
No. 448.
Public-School Finance Programs of the United States. Misc. No. 22.
The State and Education—The Structure and Control of Public Education at the
State Level. Misc. No. 23.
Digest of Annual Reports of State Boards for Vocational Education to the Office
of Education, Fiscal Year Ended June 30, 1954.
Fourth Annual Report of the Commissioner of Education Concerning the Admin-
istration of Public Laws 874 and 815, June 30, 1954.
Education in the United States of America. Special Series No. 3.
School Facilities Survey—Projected Plans for Meeting School Plant Needs.
HicgHER EpucaTION (9 isSues—September 1954—May 1955, inclusive).
ScHOooL Lire (9 issues—October 1954—-June 1955, inclusive).
160 Department of Health, Education, and Welfare, 1955
Table 1.—Grants to States: Office of Education, fiscal year 1955 *
; Colleges
White Mainte-
for Coopera- | survey and | nance
States, Territories, and Total Gintoretion a Oe ve sunook aotey att pea
Possessions nD eM pp ceene struction tion of
mechanic | educ
Education ante schools
Totals: to. a eco eee, $238,974,453 $608,048 | $5,051, 500 |$30, 522, 885 |? $120, 932, 499 |3 $81, 859, 521
ATADSI Sc oh en oee send wse 4, 417, 953 12, 557 100, 541 819, 070 2, 590, 998 894, 787
ATi z0naesaves. 5 TUS a ae 3, 148, 719 5,000 ) 77, 477 176, 617 2, 175, 368 714, 257
APKAMSAG So oe ete ee ae 2, 509, 425 7, 698 89, 048 604, 431 1, 132, 542 675, 706
Californiat 122 VAit Shee 42, 573, 053 49, 155 175, 599 | 1, 462, 830 25, 566, 322 | 15, 319, 147
Coloradosee tees eres 4, 600, 514 5, 698 83, 218 264, 598 2, 339, 366 1, 907, 634
Connecticite es wae ee 3, 536, 341 8, 718 90, 023 296, 851 1, 493, 759 1, 646, 990
Delawarete: a. Tes riper se © 369, 509 5,000 73, 173 165, 000 102, 073 24, 263
‘Rlorida ae ce eee gens 5, 186, AIG | Seo ece aa 97, 644 471, 508 2, 989, 822 1, 627, 442
Georgia esti ee een 7 953, 966 14, 456 104, 360 877, 478 5, 157, 584 1, 800, 088
UGG P34 0s nee pag ete as apart peti 1, 455, 968 5, 000 75, 872 183, 629 757, 710 433, 757
DMN Oise sos een eee eee 5, 048, 707 36, 304 156,905 | 1,319, 265 1, 363, 173 2, 173, 060
indisn aera: feet ea weeneee 2 OGR LOU aoe Sens see 109, 245 791, 108 1, 143, 720 954, 028
lowes. 22 ste sete 1, 196, 551 10, 505 96, 146 677, 803 116, 834 295, 263
Kansas ee ere eee ee 6, 280, 570 8, 089 89, 006 447, 258 2, 333, 609 3, 402, 608
Kontak 4o-3ce 30 een ds 2, 404, 880 11, 956 99, 375 831, 933 694, 690 766, 926
Howisianasces: ere eee 2, 091, 656 11, 6380 96, 769 597, 088 833, 863 552, 306
IGS ree oe ea a es See 1, 789, 914 5,000 79, 115 182, 301 915, 335 608, 163
Maryland te isse 10 sense eee: 9, 202, 216 10, 246 93, 372 368, 864 5, 871, 720 A. 858, 014
Massachusetts.........-.---] 1, 965, 333 19, 759 116, 789 578, 702 365, 219 884, 864
Michigan 222 atsnoe eee ee 7, 277,073 27, 630 133, 559 | 1,068, 101 4, 818, 472 1, 229, 311
Minnesota: sass eee eae 1, 788, 762 12, 311 99, 751 695, 523 856, 624 124, 553
Mississippit... cei cise: 1, 778, 164 8, 803 91, 735 756, 771 437, 213 483, 642
Missouria est ot 3, 865, 391 16, 517 109, 448 842, 619 1, 573, 472 1, 323, 335
Montana eee Ce ee ae 1, 272, 258 5, 000 75, 896 177, 374 667, 346 346, 637
Nebraska. 2224 ect ee 1, 778, 760 5, 432 83, 222 350, 854 271,088 1,068, 164
ING yadacns cue ee ce ime 1, 777, 956 5, 000 71, 597 139, 937 961, 865 599, 557
New Hampshire_-...____-_. 695, 289 5, 000 75, 319 162, 420 27, 064 425, 486
New: Jersey... #2222 3 oe 3, 508, 970 20, 731 118, 233 580, 067 I; 464, 102. i 325, 837
IN6w:Mexicoten a> eee 5, 287,021 5, 000 76, 795 180, 335 3, 673, 202 |. i 351, 689
INGW VOT Rees peed oe 7, 869, 339 61, 426 217, 934 | 1,866,018 3, 883, 417 1, 840, 544
North: Carolinal it =lgire.. 2, 538, 487 16. 908 110, 518 1, 169, 633 672, 253 569, 175
North) Dakota tess 2ivuen a 564, 726 5,000 76, 181 241, 993 28, 174 213, 378
COT es ae es HS ee rena 9, 245, 196 33, 747 149, 269 1, 335, 914 4, 598, 671 3, 127, 595
Oklahoma s4e bes ee | os 7, 789, 277 9,077 92, 278 534, 841 4, 188, 054 2, 965, 027
Oregon coe sek eo. ook ee 1, 470, 870 6, 460 85, 176 320, 287 528, §22 530, 425
Pennsylvanians. 320 nus 3, 859, 025 42, 970 174,720 | 1,752, 240 561, 659 1, 327, 436
Rhodé¢dsland’ <2 eaes 1, 923, 278 5, 000 77, 899 121, 678 1,018, 735 704, 966
South’ Carolina sess eee 2, 909, 521 8, 851 91, 118 602, 801 1, 169, 239 1,037, 512
South Dakotas. 22.2222 ee5 iy 350, 150 5,000 76, 511 238, 440 450, 242 579, 957
Tennessee). 2 isk. tn Oe 3, 217, 645 18, 424 102, 835 872, 729 1, 388, 580 840, 077
"LOXASSELL 225% Meee eee ae LSS TO RAST Wie beet es ee 146, 921 1, 512, 498 8, 146, 833 5, 373, 185
Gane oa ee ee sean 2, R16, O26 bes ates 76, 872 172, 329 1, 757, 221 809, 604
Vermonts_2 5. Bes eS 336, 579 5, 000 73, 768 162, 083 44, 570 51, 158
Vircinid g: sarge. ees ee 18,027, 649 Wess cees ee 103, 104 780, 631 9, 986, 932 7, 156, 982
Washington t23 25icset 12, 300, 913 9, 993 93, 731 436, 685 7, 516, 491 4, 244,013
WestiVinreiolas sons j=) see 652, 907 7, 811 90, 006 504, 398 ih 36 eee ee 50, 692
Wisconsin. 3355 2b esses 1, 445, 491 14, 186 104, 260 » 745, 322 130, 956 450, 767
Wiyoming. a. 35 a thee 675, 054 5, 000 72, 898 165, 000 205, 685 226, 471
Alaskan Sit aihics ac seo 3, 326, 368 5,000 V1, 283)! Levee Sees 648, 201 2, 601, 884
District of Columbia_______- 110, 139 0, O00] Sat a ae ee 105, 139- | 25.5 eee See
Plawaliee~ 22.1 stb a 2805! 807) 5,000 74, 986 165, 000 1, 309, 478 1, 341, 433
IPCONCORIRICO Se eee a ten eee OiS956) | fas 2 see = 50, 000 613, 911 10, 319 —274
Mirslnulslendsie esa. cnes aoe 37,092 0, QUO! | 2ueeece eee 32, 980 OSS sae PATS
1 On a checks-issued basis. Does not necessarily agree with allotments or expenditures for a given fiscal
year.
2 Does not include $6,725,000 paid to Housing and Home Finance
3 Does not include $319, 716 paid to Air Force, $2,363,051 to ‘Aetivee $13, 532 to Commerce, $5,380 to Interior,
$676,161 to Navy, and $13, 326 to Veterans’ Administration.
| * =
By a NERA at EET BR ICE PT EUS ON
Food and Drug
Administration
Tus REPORT records the activities of the Food and Drug Administra-
tion to enforce the Federal Food, Drug, and Cosmetic Act and four
less comprehensive related acts, in the fiscal year 1955. ‘The enforce-
ment staff averaged 800 for the year, with an appropriation of
$5,100,000, and the certification staff, supported by industry fees,
was 186.
The foods, drugs, devices, and cosmetics regulated by these statutes
have an annual commercial value of around $60 billion for domestic
shipments, and $3 billion for foreign items offered for import. Many
of the products involved are used daily in every home in the country.
Three important trends continued to affect the efficiency of law-
enforcement operations:
(1) Growth of population and the volume of goods produced by
the food, drug, and cosmetic industries.
(2) Growing use of advanced technological processes and new
ingredients.
(3) A continuing shift in consumer buying to factory-processed
goods instead of those prepared in the home or local pharmacy.
With reduced funds in recent years, enforcement time had to be
reapportioned to continue major attention to those types of violations
that would most adversely affect the public. A project sampling pro-
cedure was followed to check on compliance as a whole, and then regu-
latory activities were directed to careless or deliberate violations.
Available facilities have been used to assist the industries to improve
operations. Industry groups have cooperated in these programs.
In his 1955 State of the Union message, the President called for
“better consumer protection under our existing pure food and drug
laws.” Congress added $384,000 to FDA’s appropriation for next
161
162 Department of Health, Education, and Welfare, 1955
year. A recruitment program in the latter part of the current fiscal
year succeeded in locating candidates to fill the new positions thus
made possible. These are the first new inspectors or chemists to be
appointed since the drastic cut in 1958.
Seeking means to better protect the health and well-being of the
millions of American consumers of foods, drugs, and cosmetics, the
Secretary asked Congress for funds to have the Food and Drug Ad-
ministration’s activities reviewed by a representative citizens’ ad-
visory group. Appropriations were made in July 1954 and a 14-mem-
ber committee appointed about the middle of the fiscal year.
The committee included representatives of consumers, industry,
labor, educational institutions, medicine, law, and the judiciary. The
first meeting with the Secretary was on February 38, 1955, and its re-
port was filed on June 30, 1955. This was later published as House
Document 227 (84th Congress, Ist Session). The report states that
the Food and Drug Administration is not presently staffed or equipped
to render the degree of cousumer protection which the committee
believes Congress intended the public should have. It recommends a
three to fourfold expansion of the Administration within 5 to 10
years, and the application of more effective techniques to broaden con-
sumer protection. The committee’s findings will be very helpful in
the future administration of the act.
Food, Drug, and Cosmetic Act
DISASTER AND. DEFENSE ACTIVITIES
In the aftermath of a disaster, the primary obligation of food and
drug officials is to supervise the salvage of damaged goods and prevent
the use of those that would endanger the public. The most serious
such catastrophe in the fiscal year, from the standpoint of volume of
foods affected, was hurricane “Carol,” which caused a $5 million loss
of commercially stored food in Rhode Island and Massachusetts. At
Providence the products dumped included 110 carloads of fresh fruits
and vegetables, 500,000 cases of canned food, and 550,000 pounds of
flour that had been polluted by flood waters. Other large lots were
salvaged and returned to food channels after their safety was checked.
Flood damage in Chicago, southern Colorado, and along the Ohio
River also required supervision of the disposal of damaged foods,
principally by local and State officials, since large wholesale stocks—
primarily a Federal responsibility—were not seriously involved.
Knowledge of the hazards that may exist in the consumption of
foods exposed to atomic explosion must be developed before adequate
plans can be formulated for the sorting of foods exposed and the dis-
posal of those that might injure the user.
Food and Drug Administration 163
In May 1955, tests of the effects of atomic explosion on foodstuffs
were conducted in cooperation with the Federal Civil Defense Admin-
istration. Participating with the Food and Drug Administration
were the Meat Inspection Service and Agricultural Research Service,
U.S. Department of Agriculture; the National Canners Association ;
the National Association of Frozen Food Packers; and the American
Meat Institute Foundation. About 60 varieties of food staples in
representative types of packaging were exposed at varying distances
from the explosion. The participating groups are testing the 15
- tons of food exposed, not only for immediate effects, but also for long-
range toxicity and nutrition changes.
A report on similar tests of drugs previously conducted was released
in January 1955. It showed that of the 42 important common drug
items exposed, only 2 (insulin and vitamin B,.) were reduced in
potency.
Another FDA testing program for radioactivity was conducted in
connection with “Operation Wigwam,” an undersea atomic test several
hundred miles off the California-Mexico Coast. Nearly 50 million
pounds of tuna and other deep-sea fish taken from the exposed area
were monitored with Geiger-Mueller meters, and no radioactive fish
were encountered.
Late in the fiscal year, FDA began a training program for State
and local officials, designed to help equip them to safeguard the food
and drug supplies of the Nation in case of enemy attack. This pro-
gram, under a delegation of authority to the Department from the
Federal Civil Defense Administration, is designed to meet the extra-
ordinary needs of food and drug inspection in attack areas. The
classes will continue throughout the forthcoming year.
ON THE FOOD FRONT
Potential Health Hazards
Agricultural poisons.—EKarly in 1954, a new investigation began of °
practices in the spraying of fruits and vegetables during the growing
season, and of spray residues on products reaching the market. The
results were reassuring in some respects, disquieting in others. On
the whole, the residue levels for such pesticides as lead, arsenic, DDT,
BHC, and parathion were well within the range of safety.
On the other hand, the rapidly increasing number of pesticides be-
ing developed and the greater toxicity of some of these compared with
those now in use are matters of concern. If used in agriculture under
conditions which leave any residue at all on edible products, the mar-
gin of safety will be narrower than has heretofore been considered
desirable. Of concern also is that improper use of these highly toxic
substances is occasionally encountered.
164 Department of Health, Education, and Welfare, 1955
One incident particularly alerted food processors to the danger of
misuse of toxic pesticides on crops not specified in their labeling.
When FDA learned that a highly toxic dust restricted to use on cab-
bage seedlings had been used close to harvest on a variety of leafy
vegetables sold to frozen food processors, it began an intensive investi-
gation. Analysis of 140 samples of the frozen foods showed high resi-
dues of the poison in 83 samples.
The packers and distributors voluntarily withheld shipments pend-
ing the investigation and destroyed about 190,000 pounds of frozen
broccoli and kale containing toxic levels. Subsequent discussions at
trade association meetings have brought the matter to the attention
of the entire canning and freezing industries.
The field inspection and analytical coverage which can be given to
the problem as a whole make surveillance inadequate. Also, more re-
search is needed to provide suitable analytical methods.
Animal feeds——There has been a rapid increase in the use of anti-
biotic and hormone drugs administered to poultry and meat animals
to enhance growth, tenderize the meat, or increase the efficiency of
feed utilization during the finishing period. The nature of these
drugs and the manner of use are such as to classify most of them as
“new drugs.” Before they can be marketed, convincing evidence must
be furnished that the subtances are safe for the animal and do not
result in the addition of drugs to edible tissues. There is also a
problem of suitable disposition of the byproducts of slaughter so that
organs carrying residues of the drugs will not harm animals to which
they are fed.
Diethylstilbestrol for fattening beef steers and dienestrol diacetate
for improving the market quality of broilers are the first estrogenic
drugs for mixing in feedstuffs to be released under the new-drug pro-
visions of the act. After a manufacturer received clearance for a
premix of the diethylstilbestrol product, FDA was swamped with
hundreds of supplementary applications from feed manufacturers
wanting to employ it.
Legal Actions.—The proportion of potentially dangerous foods en-
countered each year is extremely low in comparison with the good,
but immediate action is required to remove the former from the mar-
ket. During the fiscal year, 1,214 tons of food were seized because
the food contained deleterious ingredients, and three firms were pros-
ecuted for permitting such contamination. One of these was an ex-
terminator who was fined and placed on probation for 3 years for the
careless use of “1080,” a deadly rodenticide, in places where it could
contaminate stored food, despite repeated warnings that such prac-
tices might cause irreparable harm.
Preponderant in volume of foods seized was grain treated with
mercury for seed use and later mingled with untreated grain and con-
Food and Drug Administration 165
signed to mills. Since the chemical could be removed, some grain
firms, in an effort to avoid having to clean large intermingled batches,
offered to pay the same rates for treated batches if kept separate from
the untreated lots. Three other carload lots of grain were seized be-
cause they were contaminated with borates, lead, arsenic, and zinc re-
maining in uncleaned railway cars that had previously been used for
commercial chemical shipments.
Other foods seized because of the presence of deleterious chemicals
were 5 shipments of frozen shrimp containing a quaternary ammo-
nium preservative and 2 lots of imitation vanilla flavor containing
coumarin. Glass in a pack of olives resulted in another seizure.
To Keep Food Clean
Food seized because it was filthy or decomposed, totaled 3,909 tons,
and accounted for 88 percent of the food seizures. Of the 94 criminal
cases instituted in the food field, 84 were based on filth charges.
The Food and Drug Administration and many industries concerned
are continuing efforts to improve the sanitary handling of food all
along the line from the farm to the market basket.
In January, the Secretary announced resumption of the program of
seizure of grain contaminated by insects and rodents, which was tem-
porarily suspended in the spring of 1953 pending study of the problem
by a 17-man committee appointed jointly by the Secretaries of this
Department and of Agriculture. The committee recommended an
expanded educational program, resumption of a regulatory program
on rodent-contaminated grain, and an accelerated research program
on prevention, detection, and evaluation of insect infestation in grain.
Steps have been taken to implement these recommendations.
The Secretary of Health, Education, and Welfare concluded, after
study and discussion with the Secretary of Agriculture, that the re-
sponsibility for enforcement of the Food, Drug, and Cosmetic Act
could not adequately be discharged without an enforcement program,
against rodent-contaminated and insect-infested grain. Twelve car-
loads, involving more than a million pounds, were seized between Jan-
uary 1 and June 30, and 15 carloads were voluntarily removed from
human food channels. Levels of contamination upon which the
seizure program was resumed are to be “tightened” as progress is
made.
The Department of Agriculture announced that wheat which does
not meet the requirements of the clean grain program will not be ac-
cepted under the Government’s loan program, and if found in posses-
sion of the Government will be diverted from food channels.
Both Departments, aided by the Fish and Wildlife Service of the
Department of the Interior (which is particularly concerned with
rodent control), are conducting intensified educational programs
166 Department of Health, Education, and Welfare, 1955
I
calculated to teach those who handle grain at every stage from the
farm to the mill to accord it sanitary care.
Operations under the factory inspection procedure, established 2
years ago, have helped materially to educate plant management. For
example, in the New England fish-processing area, 5 concerns that
received reports of decomposition in the factory samples collected
inquired about FDA’s criteria for fitness. Their quality control men
came to the District laboratory for a joint examination of suspect
fish—piece by piece—with an FDA expert commenting on decomposi-
tion encountered. Such information will afford processors a basis on
which they can refuse to accept questionable lots.
Table 1.—Actions on foods during the fiscal year 1955
Criminal ee
: - prosecu- njunction
Projects Seizures tions ins petitions
stituted
PLOGALE So: boa wore eer me Seer Se re ae ee eee ere 868 94 3
Beverages and beverage materials__...._.......-.-...-....--..-_-__- 11 5 0
Bakery and macaroni products 2 ee ae nee nee eee ee 12 14 1
Cereals and grain products:
Humanctuse? Sarr: 2 Bees Sa es ee ee eee 203 13 0
BATTING WATS Se he py te ee te 2 es ee es ee 9 2 0
Chocolate, confectionery, and other sugar products___---.----------.- 42 11 1
Dairy products:
Butterdt:s2e2s. fou) SoBe Se Se ee one ee ae oe 12 2 0
Cheese:and.other dairy products." oe ese ae ee te eee 7 8 0
Wgesiande22 productS:22.-2 . = eo. See teen eee eee 27 2 0
Hlavors; spices) condiments 2:22 -22 2205" [he eee ee aor eee 45 0 0
Broits andrait- products: | 2 eee eases. Seen te eee Lee ae ee 95 3 0
Mead progictsS:and: poultry x: se soe ee Soe er 32 8 0
NUtS'and nut products 2/0624" 22 ER Fes ee eee eee ere 57 6 0
Oils) fats and. oleomargarin0ss232 3" a ee ect een eee 5 0 1
Seatoodss 834. te eee Se eee ee Sh eee ee ee ee 135 6 0
WVecetables and vegetable products... 32) eae eee 106 7 0
Miscellaneous foods and food adjuncts___._--..--.---.-.----_----_.--- 33 6 0
Mood forspecial dietary alses: 2. = eee ee ee eee ee 37 0 0
Violative serving of oleomargarine 225 Seo. ect steer ae. elaoke aoe eee 1 0
Improvement programs are under way in the dairy industry, with
industry associations participating actively in the development of
methods to eliminate unfit milk, The American Butter Institute is
cooperating in an educational program designed to insure rejection
of unfit cream at the cream station and at the creamery and to bring
about improvement in the collecting and marketing practices which
contribute to cream spoilage and contamination. Cooperative activity
with State enforcement agencies is continuing.
The poultry business is at a crossroads. It has mushroomed from
a largely local industry to a mass-production one in a relatively short
time. The ensuing problems included a higher disease rate in concen-
trated broods, necessity for rapid handling in processing lines, changes
in dressing practices from New York dressed to eviscerated and cut-up
birds, and the rapid development of frozen, precooked items, such as
pies and “dinners.” On the Atlantic Coast, hurricane damage required
Food and Drug Administration 167
many small processing plants to shut down, and larger ones to consoli-
date. Competition for raw stock is so active that some “undergrades”
are accepted, which poses additional regulatory problems. Of the 82
shipments of poultry seized, 21 contained diseased birds.
The Food and Drug Administration has worked with the Public
Health Service, industry representatives, and State and local officials
during the past year in the development of model ordinances on poul-
try plant sanitation and inspection, for consideration by cities and
States desiring to regulate local and intrastate commerce in dressed
poultry. Another program to improve the quality of poultry resulted
in the assembling of a panel of poultry-disease experts to discuss
poultry inspection. Among the decisions reached, one of most signifi-
cance to public health, was that adequate poultry inspection requires
ante-mortem examination of the birds.
The principal problem encountered with eggs was the accumulation
of incubator rejects and their transportation in privately owned trucks
to other areas where they were intermingled with sound stock. It is
estimated that 11,000 dozen incubator rejects are diverted to human
consumption during an average week in the Southeastern States alone.
Detection of the shipments is difficult because of the racketeering
methods of operations, but some progress has been made by State
embargoes and destruction of frozen egg products at destination
points. In the Middle West, two eggbreakers were fined $2,000 for
breaking out reject eggs supposedly denatured with kerosene and
mixing them with edible eggs for freezing. A large quantity of the
egos was seized. Cooperating officials in four States assisted in tracing
the movement of the eggs and securing evidence which was presented
in Federal court.
The short crop of peanuts, because of drought, resulted in the first
import problem on peanuts since 1949. Early in 1955 the quota
restrictions were raised for shelled peanuts, and later an unlimited
quota was announced through the end of July. The first peanuts ad-
mitted under these provisions came from bordering countries and
were of excellent quality. Later boatloads from distant tropic areas
were heavily infested with live insects, and examination of every lot
was required. By the end of June, 14,480 tons had been detained, of
which a substantial part was later released after the nuts had been
cleaned under FDA supervision. Some improvement was noted fol-
lowing these heavy detentions.
Pocketbook Protection
As in the previous year, most of the actions against economic cheats
were primarily a byproduct of work done on sanitary and health
violations. Exceptions were made, however, in a few cases where
168 Department of Health, Education, and Welfare, 1955
practices of one or two concerns were seriously hampering efforts of
the industry as a whole to comply with the law.
As an example, in the oyster-packing industry most of the trade
has shown marked improvement within recent years in putting out
an unwatered pack. One concern, however, persisted in adding up
to 80 percent of water to its pack, and 15 lots were seized.
In another case, foreign shippers took advantage of FDA’s relative
inactivity in the economic field to ship cocoa powder adulterated with
30 percent or more of cocoa shell. The situation, which had become
so bad that the shippers began to use grade designations for the
adulterated cocoa, broke up promptly when entries were refused.
Seafood Inspection Service
Shrimp processors and oyster canners who meet Government re-
quirements for sanitation and controls may apply voluntarily for
Government seafood inspection service, which is supported by in-
spected packers’ fees. Nine shrimp packers processed 12,520,864
pounds of whole shrimp and 117,520 pounds of headless shrimp under
continuous Federal inspection. Five of these firms also produced
75,743 cases of canned oysters.
PRODUCTS OF SPECIAL DIETARY SIGNIFICANCE
Foods for special dietary uses may be divided roughly into two gen-
eral categories: Those to supply an increased concentration of nutri-
tional factors, such as vitamins, and those to omit or limit one or more
nutritional factors, such as carbohydrates for the diabetic or sodium
for those who must restrict their sodium intake.
The Food and Drug Administration is obligated to check such
products for composition and accurate and informative labeling. At
the same time, it recognizes that the vast majority of people have no
need for special dietary products and can obtain all their nutritional
needs by a balanced diet of the wholesome foods that are abundant in
this country. Consequently, the activities of those who attempt to
scare the public into buying “health foods” as the only means of ade-
quate nourishment, or for the cure or prevention of disease are dis-
couraged by all available means.
One such promoter was convicted in January 1955, and sentence is
still pending. Meanwhile, he has had many experiences with State
and city agencies trying to prevent false claims and the illegal practice
of medicine during a series of “health lectures.”
Prosecution cases have been forwarded to the Department of Justice,
against 3 house-to-house salesmen of a vitamin preparation for oral
claims beyond those permitted by an injunction order stipulated to
by the distributors. These cases have not yet been tried.
3
;
!
‘
;
Food and Drug Administration 169
There has been a notable increase in the use of vitamin B, in multiple
vitamin preparations during the year, stimulated, no doubt, by the
occurrence of convulsions in babies who had been fed a formula found
deficient in Bg.
The interest in the development of commercially prepared foods
limiting basic ingredients or seasonings is increasing rapidly. Physi-
clans are prescribing more special diets for the management of certain
diseases, and a growing percentage of the public is counting calories
in weight control efforts.
Just as the housewife was gaining new freedom in providing normal
diets through factory-processed foods, many women found it neces-
sary to do most of the processing of fede foods in the home
because the ready-to-eat foods contained more sodium than is nor-
mally present in home-prepared foods. To meet this demand, manu-
facturers began to provide various mixes with a low-sodium content,
as well as various unsalted canned foods.
The low-sodium food regulations which went into effect September
29, 1954, provide that products purporting to have a low-sodium
content bear label declarations of the sodium present in terms of
milligrams per 100 grams of food and per average serving. During
the year, seizures were made of beets and soup mix that failed to
conform to these labeling requirements, and of spinach, applesauce,
and soup mixes that contained more sodium than labeled.
Artificial sweeteners, formerly confined to food for diabetics and
others whose sugar intake required control, have recently been used
extensively for foods offered for their low-calorie count. The Federal
law bans the use of such nonnutritive substances in confectionery prod-
ucts, but permits their use in other unstandardized foods under proper
labeling if they are not deleterious and do not conceal inferiority. The
only provision in the food standards for canned fruits without sugar
is for a water pack, without artificial sweetening. Several packers,
operating under temporary permits from the Secretary, have been
shipping water-pack canned fruits with artificial sweeteners, and a
petition has been filed to have such sweeteners included as optional
ingredients in the food standards. At the close of the fiscal year the
FDA was awaiting a report from the Food Protection Committee of
the National Research Council on further investigations to determine
the maximum safe intake levels of one sweetener proposed for use.
Earlier recommendations of the National Research Council estab-
lished a distinction between special purpose foods and those for
normal consumption and its opinion that foods containing artificial
sweeteners should be used only by those who must restrict their intake
of ordinary sugar.
868636—56——-12
170 Department of Health, Education, and Welfare, 1955
The Food Protection Committee also submitted recommendations
on “Principles and Procedures for Evaluating Chemical Additives in
Foods,” which will be most useful.
DRUGS AND DEVICES
FDA held numerous conferences with the drug industry and medical
specialists during the year to exchange information and views on the
safety and appropriate labeling of drug products.
To correct the present paucity and disorder of reports on the un-
toward effects of drugs encountered by physicians and hospitals,
FDA has undertaken a pilot study on voluntary reporting in coopera-
tion with the American Association of Medical Record Librarians,
the American Medical Association, and the American Society of
Hospital Pharmacists. If this is successful, efforts will be made to
extend it to a widespread system of permanent reporting, with the
assembled information made available to all interested parties.
Recalls —Twenty-nine drug and device recalls were supervised by
FDA during the year. Eleven of the products involved were below
labeled potency and five were nonsterile injectables. Another non-
sterile product recalled was an eye solution which was the subject of
injury complaints. Three others involved Rauwolfia of a species
other than the serpentina species covered by new-drug applications.
Other reasons for recalls were: Marketing without effective new-drug
applications, variations from U. S. P. specifications, defective pack-
aging, and untoward reactions when injected. Two devices were
recalled—blood donor and intravenous administration sets with
mechanical imperfections.
Prescription drug sales.—Illegal sales of prescription drugs were
charged in 141 of the 154 drug and device prosecutions instituted dur-
ing the year. The 142 prosecutions tried during that period on charges
of illegal sales included some that were filed in the previous year.
Penalties ranged from nominal fines to $5,000, the highest fine
assessed for any violation of the act during the year; 5 of the 6 jail
sentences served were for illegal drug sales.
Two of the latter were imposed on men who issued prescriptions for
dangerous drugs but were not licensed to practice medicine. One
self-styled practitioner had been operating as a physician and sur-
geon for 19 years without a license, which had been refused because
he could not fulfill educational requirements. He was sentenced to
10 months’ imprisonment for sales of barbiturates without prescrip-
tions. Another case involved an Indian octogenarian who had been
deprived of his license to practice in Oklahoma because of violations
of the Narcotics Act. In 1954, he had been fined, given a 1-year sus-
pended jail sentence, and placed on probation for 5 years for illegal
sales of amphetamine. One of the conditions of the probation was
%
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3
s
Food and Drug Administration 17]
that he cease handling drugs in any form. When he persisted in
selling amphetamine despite these conditions, the court committed
him to an old soldiers home for the duration of his probation.
In addition to the small minority of pharmacists who disregard
their professional obligations, there are peddlers who obtain drugs
illegally and sell them promiscuously. For example, one woman who
was placed on probation ran a massage parlor and dispensed ampheta-
mine to obese patients as an adjunct to her weight-reducing treatments.
Also, she was reported to have been supplying these drugs to airmen
on furlough, to enable them to stay awake on long auto trips home.
Reports of similar traffic in “lift pills” to truck drivers are under cur-
rent investigation by FDA inspectors.
Adulterated or misbranded drugs and devices—Of the remaining
13 prosecutions filed, 9 charged false and misleading curative claims.
Other charges were based on faulty composition and failure to bear
the labeling required by law.
There is a ready market among gullible persons for new “miracle”
drugs and contraptions to cure or alleviate their ailments. Promoters
capitalize on this market on the heels of articles appearing in popular
magazines, “health” lectures, and other means designed to launch
the product and establish its purported virtues so firmly in the minds
of purchasers that they will continue their patronage even after regu-
_ latory agencies restrict the claims. Although it will always be a
problem to eliminate active exploitation in this field, the success of
these promotions varies inversely with the time available for enforce-
ment activities.
In September 1954, a prosecution case against the promoter of a
diabetes “remedy” was lost on the ground that a 1923 patent contain-
ing statements as to the efficacy of the drug for the treatment of
diabetes established the validity of similar current claims. The Gov-
ernment had presented the testimony of eminently qualified medical
and pharmacological witnesses to the effect that the preparation,’a
mixture of wild sweet pea and lithium citrate, has no effect in the
treatment of diabetes. The decision is being appealed since if it is
permitted to stand the public will continue to be exploited by this
worthless remedy when there are effective measures available to con-
trol the disease, failure to use which will bring disastrous results.
A contempt action against another worthless diabetes remedy pro-
moter, who had continued shipping a weed concoction despite injunc-
tion orders, was dropped when the court held that he was mentally
incompetent and warned that he would have him committed to a mental
institution if he persists in distributing the product.
A number of seizures, followed by a permanent injunction, were
initiated to stop shipments of a device consisting of a cabinet fitted
172 Department of Health, Education, and Welfare, 1955
8 ee ee ee
with a sunlamp and shortwave unit and colored slides assembled so
that jugs of water could be irradiated. The treated water was recom-
mended for apoplexy, tumors, ulcers, virus infections, and a variety
of other serious diseases. State officials assisted materially in develop-
ing these cases. }
Another device case, in which the defendant received a 90-day jail
sentence, was based on false and misleading curative claims for color
lamps. The defendant was an itinerant “health” lecturer who claimed
that various serious diseases and abnormal conditions are caused by
specific colors. He offered other colors shining from his lamp to off-
set them. For example, “yellow diseases,” such as jaundice, diabetes,
and consumption, required a green treatment light, while “violet dis-
eases,” such as laryngitis, goiter, and heart trouble, needed yellow.
One device not only was promoted by fraudulent claims for breast
development but also was potentially dangerous to users. Medical
consultants for the firm agreed that it might aggravate incipient
cancerous conditions if it were used without competent medical ex-
aminations, but it was being promoted through mail-order solicitations
and newspaper ads on a nationwide scale. Stocks of the devices were
seized, and a permanent injunction was required to stop shipments.
Uranium ore treatment “tunnels,” pads, blankets, and other con-
tainers for slightly radioactive ore and sand continue to attract suf-
ferers from arthritis. The radioactivity is of too low a degree to
have any effect whatsoever on any disease condition. Six seizures
were effected against interstate shipments. Other actions were under-
taken by State authorities. Some of the blankets and hot water bottles
containing the supposedly radioactive material were not for sale but
could be leased for $25 a month. One of the “tunnels” was erected
in a treatment building to which arthritics were encouraged to come
and sit on ore-upholstered benches, with additional emanations sup-
posedly coming from linings of the floor, walls, and ceiling.
Previous reports have discussed an injunction to restrain mis-
branded drug shipments from a Texas cancer clinic. Last year the
operators of the clinic established a branch in Pennsylvania where a
large quantity of its drug supplies were seized. Some, however, were
apparently moved before the U. S. marshal arrived, so that the new
clinic could continue treating patients until new supplies could be
secured from intrastate sources. The seizure is now under contest.
Another injunction, filed in 1954, also required continuing atten-
tion. It involved an elaborate sales promotion scheme, including
false foreign addresses, for an inert glandular product misbranded
with sex rejuvenation claims. A permanent injunction was granted
in November 1954, and a criminal prosecution case is pending.
Food and Drug Administration © 173
New Drugs
New-drug applications submitted during the year numbered 606.
Of these, and those under study at the close of the previous fiscal year,
433 were allowed to become effective—348 drugs for human use and
90 for veterinary use. In addition, 2,277 supplemental applications
went into effect, of which 1,163 were for veterinary preparations.
Some of the important drugs considered during the year were prepa-
rations for the treatment of arthritis, allergic conditions, tuberculosis,
and skin conditions; radioactive agents; nonbarbiturate hypnotics;
antitussive agents; antibiotics, such as mycostatin and anisomycin;
anticholinesterase agents; nonmercurial diuretics; blood volume ex-
panders; ganglionic blocking agents; anesthetics; and growth promo-
tion agents in animals, such as diethylstilbestrol.
COSMETICS AND COLORS —
Two cosmetic preparations were recalled because of a dangerously
high carbon tetrachloride content that would endanger users through
inhalation and skin absorption. Both were intended as rapid driers,
one for nail polish and the other for hair following shampoos. Four
shipments of the latter were seized.
Other products recalled from consumer channels were a shampoo
that exploded on dealers’ shelves because of a highly chlorinated water
used in diluting its hydrogen peroxide content, and a hair dressing
containing an uncertified coal-tar color.
Two shipments of coal-tar colors were seized which were destined
for food use but had not been certified for that purpose. The four
colors in one lot were falsely labeled “U. S. Certified Food Colors.”
CERTIFICATION SERVICES
Coal-tar colors.—All coal-tar colors used in foods, drugs, and cos-
metics (except hair dyes) must be from batches certified as harmless
by FDA. In 1955, 4,655 batches, representing 5,140,202 pounds, were
certified, and 20 batches, representing 13,144 pounds, rejected.
Insulin.—The act provides for predistribution testing and certifica-
tion of all batches of insulin marketed. Examination of 330 samples
resulted in the certification of 286 batches of insulin and 48 batches
of materials for use in making insulin-containing drugs. One trial
batch of NPH insulin was not approved because it contained excess
protamine.
Antibiotics —The predistribution testing and certification of certain
antibiotics is also provided by amendments to the act. Examinations
were made of 20,728 batches of penicillin, dihydrostreptomycin, tetra-
cycline, bacitracin, chlortetracycline, streptomycin, and chloram-
174 Department of Health, Education, and Welfare, 1955
a ee ee
phenicol during the fiscal year. Sixty-six batches were rejected for
failing to meet the following standards: Potency (25), sterility (21),
pyrogens (18), moisture (1), and syringeability (1). In addition,
manufacturers withdrew their requests for certification of 19 batches
because they failed to meet sterility and other standards.
During this period, 354 amendments and 34 new monographs were
added to the antibiotics regulations, reflecting continued scientific
research and development in this field.
CHANGES IN THE LAW AND REGULATIONS
Pesticide chemicals—The Pesticide Chemicals Amendment, which
became law on July 22, 1954, was intended to provide a simplified, ex-
peditious procedure for establishing safe tolerances for pesticide chem-
icals which are useful in agriculture. It was scheduled to become fully
effective in 1 year with regard to chemicals for which tolerances had
not been established, unless conditions existed which necessitated an
extension. If so, extensions for specific chemicals were permitted up
to an additional 12 months.
Interpretive, procedural, and fee regulations under the amendment
were issued in February 1955. In March, tolerances were established
for 69 chemicals on which hearings had been held before the enactment
of the amendment. These included a number of pesticides not re-
quiring tolerances because they present no foreseeable hazard. Ex-
tensions of these tolerances and exemptions to include additional crops
(or raw agricultural commodities) will be made under the provisions
of the 1954 amendment.
Before a tolerance is set under the new amendment, the Secretary
of Agriculture certifies the usefulness of the pesticide for the pur-
poses proposed in a petition for tolerances and gives his opinion of
the residues expected to remain on crops following its use; then FDA
chemists ascertain that the proposed method of analysis is reasonable
and sufficiently accurate, and its pharmacologists determine from the
applicant’s data on toxicity what residue of the chemical would be
without hazard if it remained in the food supply.
During fiscal year 1955, 24 petitions for tolerances or exemptions
were received under the new amendment; 18 were filed; 1 was with-
drawn without prejudice to a future filing; and 5 were in pending
status at the close of the year. One permanent and 3 temporary tol-
erances had been established. One manufacturer had requested re-
ferral of his petition to an advisory committee of experts selected by
the National Academy of Sciences.
Because the date on which the law was scheduled to become fully
effective fell in the middle of the 1955 growing season, it became
apparent that the effective date of the law should be extended for
a number of pesticide chemicals until the end of the growing season
Food and Drug Administration 175
or about October 31, 1955, if the health of the consumer would not
be endangered. Criteria for judging requests for extension of the
effective date were published in the Federal Register, and shortly
after the end of the fiscal year, a number of extensions were granted.
Food standards.—This is the first full year of operations under
the new procedure for initiating proceedings looking toward the adop-
tion, amendment, or repeal of food standards, prescribed by an amend-
ment to the Federal Food, Drug, and Cosmetic Act on April 15, 1954.
No public hearing has been requested.
From the date of enactment to June 30, 1955, 10 petitions were
received from interested parties proposing the adoption or amend-
ment of food standards. One proposal was published on the initiative
of the Secretary of Health, Education, and Welfare. Four final or-
ders have issued amending standards for tomato catsup, canned vege-
tables, cheese, and enriched farina. ‘The others are in various stages
of consideration. (See “Products of Special Dietary Significance”
for comment on proposals for the addition of artificial sweeteners to
canned foods.) Experience with the new procedure indicates that
it has many advantages over the old.
The whole food-standards formulation program has had to be
curtailed because of limitation of funds and no new work was under-
taken. Formulation of standards for canned tuna is progressing and
the standards may be promulgated under the new standard-making
procedures.
Drug regulations.—A. regulation issued in November 1954 provides
an orderly basis for changing to over-the-counter sales, with appropri-
ate labeling for lay use, of drugs previously limited in new-drug appli-
cations to prescriptions sale, when experience in use establishes that
they are safe for unrestricted distribution. This regulation became
necessary because of the requirement in the Durham-Humphrey
Amendment that only drugs that are not safe for unsupervised use by
laymen may be labeled with the prescription legend.
NEW COURT INTERPRETATIONS
The U. S. Court of Appeals for the Second Circuit affirmed the
conviction of a corporation and its secretary for misbranding butter
while it was held for sale after receipt in interstate commerce. The
butter had been repacked into cartons labeled “One Pound Net
Weight,” although the prints each weighed less. The appellate court
held that it was not necessary for the Government to prove that the
defendants knew that the butter they repacked had been shipped
interstate or that it was short weight when repacked.
The U.S. Court of Appeals for the Third Circuit upheld a district
judge in his refusal to permit defendants to retract a plea of guilty to
charges of violating the Food, Drug, and Cosmetic Act. The court
176 Department of Health, Education, and Welfare, 1955
£08 Ee ——————
pointed out that the original plea had been not guilty, that against
the advice of their counsel, in an unhurried decision, defendants
changed their pleas to guilty, and therefore the district court did not
abuse its discretion.
In affirming a conviction for illegal dispensing of prescription drugs
after shipment in interstate commerce and while they were being held
for sale, the U. S. Court of Appeals for the Tenth Circuit held that
the method of transportation of the drugs in interstate commerce was
immaterial. The evidence showed that the capsules sold by the de-
fendant in Colorado were manufactured in Illinois, and the court
held that the inference was inescapable that they had been transported
in interstate commerce, and that how they were transported, when,
and how the defendant obtained possession of them was immaterial.
In the same decision, the court ruled that there had not been entrap-
ment when the inspector called and asked the defendant to sell him
the capsules but merely offered an opportunity for defendant to make
an illegal sale.
A district court in refusing to permit distribution of seized ultra-
sonic devices to chiropractors ruled that chiropractors licensed under
the laws of California were not authorized to use or direct the use
of ultrasonic devices, and that ultrasonic therapy is part of the prac-
tice of medicine, but not of chiropractic. After seizure, the claimant
had reconditioned the devices mechanically to comply with the act
and then moved for a court order permitting him to distribute them
to chiropractors.
A district court extended the doctrine that the falsity or misleading
character of labeling is to be measured by its significance as read by
those to whom the labeling is directed. A corporation and its man-
ager were convicted of shipping in interstate commerce vitamin prod-
ucts accompanied by false and misleading labeling claiming that the
product was effective to remedy the feeling of growing old and con-
sequent loss of vitality and strength. The judge, in reaching the
decision that the claims in the labeling were “cruelly” false and mis-
leading, stated that the test was not the reaction of the average person
reading the label but rather the reaction of those elderly people who
“need little more than a vagrant suggestion to lead them to hope in
_ the restorative ministry claimed.”
A district court, in interpreting Section 303 (ce), which provides
exemption from penalty provisions of the Food, Drug, and Cosmetic
Act, held that for conviction it was necessary to establish bad faith
on the part of the defendants when they received in interstate com-
merce goods covered by a guaranty. That Government inspectors
had notified the defendants of the misbrandings, or that seizures of
the product had been made on the defendants’ own premises, was not
Food and Drug Administration 177
construed by the judge as sufficient evidence to prove that the de-
fendants had acted in bad faith. .
In granting the Government’s motion for summary judgment in a
seizure action involving a spaghetti product which failed to comply
in protein content with the prescribed definition and standard of
identity for spaghetti, a district court reaffirmed the principle that
the use of qualifying labeling cannot correct deviation from the stand-
ard, unless it is in fact an imitation product, labeled and sold as such.
On rehearing, the court affirmed its former decision in spite of claim-
ant’s argument that the product had a separate identity, since it had
been marketed for many years prior to adoption of the standard of
identity for spaghetti. The claimant has filed a notice of appeal.
SCIENTIFIC INVESTIGATIONS
All of FDA/’s scientific studies are applied directly to regulatory
activities and the certification services rendered. New products
and processing methods require evaluation for long-range safety to
consumers. Methods of quantitative analysis must be devised before
the toxicological studies of a new substance may be undertaken.
Earlier in this report the use of a toxic chemical on leafy vegetables
for which it was not recommended was discussed. To test the samples
of frozen vegetables suspected of containing this pesticide, acceptable
methods to determine trace quantities had to be devised. By a bio-
assay test using flies, amounts ranging from 0.12 to 0.98 ppm were
found. After chemical separation, the pesticide was identified by
paper chromatography.
Definite analytical patterns are beginning to emerge from the studies
being conducted on other pesticides. For example, nine of the more
common chlorinated organics can be separated into groups because
of their stability to acid or alkali. The slower bio-assay tests are
still required for those where specific chemical methods are not avail-
able. Paper chromatographic studies are proving useful, not only for
various pesticides but also for rodenticides, artificial sweeteners, chain
and ring organic phosphates, the fruit acids, volatile fatty acids, and
various fungicides.
Several studies were made of the results of the use of antibiotics in
the treatment of diseases in food-producing animals and in feed sup-
plements to promote growth. Methods were developed for the deter-
mination of four antibiotics in feed supplements and mixes. One
study made of chickens treated with oxytetracycline showed enough
retention of the drug in the tissues so that the manufacturer changed
the formula. The new product is now under study. Trace amounts
of penicillin were found in 11.6 percent of 474 samples of market
milk tested.
178 Department of Health, Education, and Welfare, 1955
a ee
Other antibiotic studies were made of: Cycloserine, for its value in
tuberculosis; combinations of antibiotics with therapeutic vitamins
and with certain hormones for topical application; the standardiza-
tion of penicillinase, an enzyme that destroys penicillin and is useful
in sterility testing of penicillin ; the correlation between bacteriophage-
type and antibiotic resistance of staphylococci; new methods for the
assay of polyene antifungal antibiotics; and modification of the assay
of penicillin, so that new, highly insoluble salts can be measured
chemically.
Considerable variation exists in the therapeutic efficacy of veratrum
alkaloids on the market. Methods for the chemical separation of
some of these substances were developed, but tests on animals do not
correlate well with the actual alkaloid content of the drug. Potency
control remains unsolved.
Continuing potency control of insulin and corticotropin, on the
other hand, may be maintained at a constant level through the evalua-
tion of new U. S. P. Reference Standards in terms of the old
standard.
New or improved chemical methods have been developed for tetra-
cycline, conjugated estrogens, norepinephrine, and nitroglycerine.
Paper chromatography is being used increasingly as an analytical
tool for drug determinations as well as in the food field, and a new
technique for continuing ascending paper chromatography was
developed.
Work on the identification of the various species of Rauwolfia by
histological methods was done during the year and is continuing as
new species are being introduced into commercial drug channels.
These botanicals, which provide the active ingredients for a number
of important drug products used in hypertension and other related
diseases, have been involving substitution of other species for ser-
pentina, the only one covered by new-drug applications. Colorimetric
and chromatographic procedures were developed for determining
reserpine, a drug extracted from Rauwolfia serpentina.
Special attention was given also to identification of prescription
drug tablets to establish proof of interstate origin in illegal sales
cases when shipping records are not available.
A continuing pharmacological study of ipecac included in barbi-
turate preparations to cause emesis before dangerous amounts are
ingested showed that amounts of ipecac retained caused pathological
changes that preclude its use as a “built-in antidote.”
Cutaneous toxicity studies of talcum powders containing 5 to 12
percent of boric acid led to the conclusion that their absorption is in
direct proportion to the abrasion of the skin, with no penetration of
the intact skin. They are absorbed in toxic quantities by severely
burnt skin where weeping serous surfaces are exposed.
Food and Drug Administration 179
Bacteriological investigations included work on sterilization of and
efficacy of bacteriostatic agents in various pharmaceuticals, on frozen
strawberries, eggs, and precooked foods, on staphylococcus food
poisoning, and on methods for detecting Salmonella.
Microanalytical studies on foods continued toward better methods
of filth extractions and identification. A method for whole-can test-
ing of cream was put into field use. Chemical methods for the de-
termination of water-insoluble fatty acids and butyric acid were
adapted for use in detecting the use of decomposed cream in butter.
A diagnostic method was developed which is effective for visually
detecting moniliasis in live chickens and turkeys with a Pan-Endo-
scope. Before this development, accurate diagnosis could be made
only by post-mortem examination of test birds. Using this new
method, controlled experiments have been developed to establish that
copper sulfate is worthless at any safe concentration either as a treat-
ment or preventive of moniliasis. Other tests were conducted on
veterinary products recommended as anthelmintics, coccidiostats,
coccidiosis treatments, internal treatments for external parasites, and
turkey histomoniasis (blackhead) preventives and treatments.
Enforcement of Other Acts
A total of 96,798,446 pounds of tea was examined under the Tea
Importation Act, in contrast with totals of approximately 124 million
in the fiscal year 1954 and 102 million in 1953. Rejections for failure
to measure up to the standards set by the U. S. Board of Tea Experts
totaled 132,283 pounds, or 0.14 percent. Four rejections were ap-
pealed to the U. S. Board of Tea Appeals, which upheld the decision
of the FDA examiner in each case.
Five caustic poisons were seized for failure to bear the labeling re-
quired to warn users of their potential danger if misused. Included
were drain, radiator, pipe, and toilet bow] cleaners.
Two permits were issued for importations of milk from Canada.
No violations of the Filled Milk Act were encountered.
Enforcement Statistics
The 11,161 establishment inspections conducted by FDA were
divided into 8,900 for foods, 1,901 for drugs and devices, 282 for
cosmetics and colors, and 78 for miscellaneous products and items
covered by other acts. Of 19,469 samples collected, 10,697 were foods,
8,259 drugs and devices, 400 cosmetics, and 113 miscellaneous.
In the 275 criminal actions terminated (or terminated for some
defendants) in the Federal courts during 1955, the fines paid, or
180 Department of Health, Education, and Welfare, 1955
assessed in cases pending on appeal, totaled $160,403.80. The heaviest
fine in a single case was $5,000. In 50 actions the fines were $1,000 or
more. Jail sentences were imposed in 21 cases involving 24 individual
defendants. The sentences ranged from 8 days to 45 months and aver-
aged about 11 months. Six individuals were required to serve the
imposed sentences, and for 18 individuals the jail sentences were
suspended, on condition that violative practices be discontinued.
Records of actions terminated in the Federal courts were published
in 1,440 notices of judgment issued during the year.
Table 2.—Number of samples on which criminal prosecutions and seizures
were based and number of court actions instituted during the fiscal year
1955
Total Criminal prosecu- Seizures accom-
tions instituted plished Injune-
Item ; oo Oe
Violative ; Violative . Violative | | : quested
samples Actions samples Actions samples Actions
Wotaleesee = ee een ee 2, 676 12307 1, 079 248 1, 597 1, 049 10
BP OOdS Pee fee ae, eer es 1, 583 965 302 94 1, 281 868 3
Drugs and devices_--__-------- 1, 076 331 777 154 299 170 7
Cosmetics and colors._._..--_-- 11 6 0 0 11 6 0
Caustic poisons_-......-..------ 6 5 0 0 6 5 0
Table 3.—Import inspections and detentions during the fiscal year 1955
Inspected Inspected
Item Total and refused and re-
entry leased
Totals. tee eS hee eer 2 eee ee a eee ee 24, 151 6, 167 17, 984
FOOdS: 2) REE os oe ee oe ee eee peat Siler ae 21, 077 3, 626 17, 451
Drugsand'devicese zis Si 2 A AE De eae Bee See 2, 991 2, 515 476
Cosmetics, colors, and miscellaneous.._) . i222. le om ee 83 26 57
ee eee a ee
Office of Vocational
Rehabilitation
Fiscal 1955: The Battle Against Disability
Gains Momentum
Fiscab YEAR 1955 was the first year of operation of the State-Federal
vocational rehabilitation program under the mandate set forth by
Congress in Public Law 565 dated August 3, 1954.1. It was the first
year of a new era in vocational rehabilitation—of an expanded and
intensified attack against disability.
To a great extent, 1955 was a year of tooling up for the expanded
program called for by P. L. 565. But it was also a year of genuine
progress both in the rehabilitation of the handicapped and in the
development of public awareness of the problems posed by disability.
Nineteen hundred and fifty-five saw the reversal of a 3-year down-
trend in the number of handicapped persons returned to productive
work through the public vocational rehabilitation program. It saw
the inauguration or expansion of numerous facilities for service to the
disabled. It saw a number of basic research and demonstration proj-
ects launched—projects dedicated to the study of disability problems
of nationwide concern.
It saw educational institutions throughout the nation collaborating
wholeheartedly with the Office of Vocational Rehabilitation and with
associated State agencies in a drive to remedy the drastic shortages
of trained personnel in the rehabilitation field.
BASIC INGREDIENTS AND OBJECTIVES OF PUBLIC LAW 565
Public Law 565 represented the greatest legislative impetus ever
given the public vocational rehabilitation program since the inception
1 Unless otherwise indicated in the text, all subsequent references to 1955 will be to the
fiscal year—that is, to the period between July 1, 1954, and June 30, 1955, inclusive.
1él
182 Department of Health, Education, and Welfare, 1955
of the existing State-Federal partnership. The law gave the Federal
Office and the 88 State agencies which make up that partnership the
most powerful weapons they have ever had to cope with the awesome
problem of disability.
In the post-World War IT period, the public program has returned
more than half a million handicapped people to productive work, an
average of about 56,000 per year. However, it is estimated that some
250,000 Americans come to need vocational rehabilitation annually.
The gap between those who are receiving vocational rehabilitation
services and those who need them is a large one.
Public Law 565 was designed to close that gap. It was enacted with
the understanding that the task would require time, great effort, and
maximum cooperation between public and private organizations con-
cerned with the welfare of the handicapped. It was enacted in aware-
ness of the terrible toll disability has been exacting from America both
in terms of human dignity and of concrete material loss.
The law’s avowed aim is to assist “the States in rehabilitating
physically handicapped individuals so that they may prepare for and
engage in remunerative employment to the extent of their capabilities,
thereby increasing not only their social and economic well-being but
also the productive capacity of the Nation...” |
Public Law 565 authorized $30 million for Federal grants-in-aid for
1955, $45 million for 1956, $55 million for 1957, $65 million for 1958,
and such sums as the Congress may decide upon for each succeeding
year. The amounts actually appropriated are determined annually
by the Congress. For example, $27.9 million was appropriated for
grants to the States and other agencies in 1955 and $35,825,000 for these
purposes in 1956.
Public Law 565 authorizes the use of Federal funds for the training
of doctors, nurses, rehabilitation counselors, physical therapists, occu-
pational] therapists, social workers, and other specialists to meet the
personnel needs of the expanded rehabilitation program. It encour-
ages co-operation between public and private agencies at all levels—
Nation, State, and community—with a view to co-ordinating the all-
out drive against disability.
The 1954 legislation set up a new three-way grant system composed
of basic support, extension and improvement, and special project
grants. The basic support grants, which account for the great bulk
of the grant money, are designed to help the States meet the costs of
administering their basic vocational rehabilitation programs. Federal
funds for basic support are allocated in keeping with a legislative
formula which takes into consideration State population, per capita
income and other factors.
Each State is called upon to provide a specified sum—a sum deter-
mined in keeping with the aforementioned legislative formula—to
Office of Vocational Rehabilitation 183
match the Federal basic support funds allotted to it. If a State does
not provide the full sum specified, Federal law requires that its basic
support grant be reduced accordingly.
Extension and improvement grants are made to the States for
extending and improving services to the disabled. Here, again, the
Federal grant must be matched in a specified ratio by the recipient.
Federal extension and improvement funds have gone into such proj-
ects as the extension of services to the mentally ill, the setting up of
programs for working with the rural blind, and the improvement of
supervisory, consultative and casework methods in use by State
agencies.
The third type of grant—that for special projects—is dedicated
to two objectives: (1) to pay part of the cost of research, demon-
stration or training projects which hold promise of making a substan-
tial contribution to the solution of vocational rehabilitation problems
that are common to several States and (2) to aid in a substantial nation-
wide expansion of rehabilitation programs in the States.
HIGHLIGHTS OF 1955
The number of persons rehabilitated through the public vocational
rehabilitation program during 1955 was 57,981, a 4 percent increase
over the preceding year. This represented the reversal of a 3-year
downtrend.
Total expenditures for the public vocational rehabilitation program
during 1955 amounted to $40,752,809. Of this total, $25,462,214 was
spent by the Federal government, the remainder by State agencies and
cooperating nonprofit organizations.
Those rehabilitated during 1955 are now paying Federal income
taxes at the estimated rate of $8.5 million per year. At this rate, they
will repay the equivalent of the entire Federal investment in their
rehabilitation within three years.
Those rehabilitated during 1955 increased their combined annual
earnings from an estimated $15 million prior to their rehabilitation’
to an estimated annual rate of $105 million afterwards.
The 1955 rehabilitees are adding about 89 million man-hours of
production to the national economy each year.
The average cost per individual rehabilitated through the State-
Federal program during 1955 was $666.
184 Department of Health, Education, and Welfare, 1955
During 1955, the Office granted $299,000 for 18 special research proj-
ects being conducted by public or private nonprofit organizations for
the purpose of solving rehabilitation problems of nationwide sig-
nificance.
The Office made grants to 91 teaching institutions which had ar-
ranged their curricula and plans to co-operate in the training of badly-
needed rehabilitation specialists. Federal funds also went to provide
traineeship grants for more than 1,000 qualified students in fields such
as physical therapy, occupational therapy, medicine, social work, re-
habilitation counseling and psychology. 7
Forty percent of the $22,300,000 spent by the public program for the
purchase of services for handicapped clients during 1955 was spent in
the field of medicine—for such things as examinations, treatment,
prosthetic appliances, and hospital and convalescent care.
The Rehabilitated: Some Facts and Figures
CHARACTERISTICS OF THE DISABLED
Among the men and women rehabilitated through the State-Federal
vocational rehabilitation program during 1955 were those with vir-
tually every type of physical impairment. The eight broad categories
of disability represented among the rehabilitants are shown in Chart
ip s1S5 |
The orthopedically disabled accounted for 40 percent of the total
number rehabilitated. About three-fifths of the persons with ortho-
pedic disabilities were injured in accidents, and about one-fifth became
disabled as the result of poliomyelitis, arthritis, or osteomyelitis.
Chart I also shows the major vocational fields which the rehabil-
itants entered. The distribution of the rehabilitants as to vocation
has not changed significantly over the past several years. It is inter-
esting to note that only 6 percent of those rehabilitated were in the
unskilled category.
Physicians, health agencies, and hospitals continued to be the most
important sources of referrals, such referrals accounting for 34 per-
cent of those rehabilitated through the public program in 1955. Fif-
teen percent of those rehabilitated during the year were referred by
public welfare agencies.
All of those rehabilitated received counseling and guidance services
and most were placed in gainful employment through the rehabilita-
tion program. Forty-three percent were provided with physical res-
toration services and 31 percent were given some sort of training. Ten
percent received both physical restoration and training services.
185
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186 Department of Health, Education, and Welfare, 1955
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DOES REHABILITATION PAY?
Rehabilitation does pay dividends in the economic as well as in the
social and humanitarian sense. |
An estimated 11,600 of the 58,000 rehabilitants during 1955 were
receiving some form of public assistance at the time they were ac-
cepted for services or at some time during rehabilitation. About
43,000 of the rehabilitants were unemployed at the time they began
rehabilitation. 7
Rehabilitation has thus converted these thousands of unemployed
and public relief recipients into wage-earners who are contributing a
sizeable sum to the support of their government. Not only are they
currently paying Federal income taxes at an estimated rate of $8.5
million per year; it is also estimated that, during their working lives,
they will pay $10 in Federal income taxes for every Federal dollar
invested in their rehabilitation.
But Federal tax revenues are not the only economic benefits that
accrue to the nation through vocational rehabilitation. The increased
buying power of 58,000 newly rehabilitated Americans and of the fami-
lies which many of them head means more taxes for State and com-
munity government. It also makes for stability in the economy as a
whole. Wage earners are spenders and spending is essential if the
wheels of industry are to be kept moving.
Strengthening the Program at the Grassroots
Armed with a legislative mandate for stepping up the attack against
disability, the Office during 1955 concentrated upon strengthening
the public vocational rehabilitation system at the grassroots—in the
communities of the nation. Emphasis was placed upon giving State
agencies maximum authority and responsibility consistent with the
requirements of Federal law, upon expanding and improving existing
programs for the rehabilitation of the disabled, and upon fostering
interagency cooperation.
THE STATE PLAN
The State Plan is a blueprint of the State vocational rehabilitation
program. It describes the organization of the program and the major
policies and procedures to be adhered to in its operation.
Under Public Law 565—which gave the States considerably more
discretion and latitude in the development and operation of their re-
spective programs than was previously the case—the States were called
upon to submit new Plans for approval by the Office. To assist the
States in the preparation of these new Plans, the Office produced and
issued a special guide for State agency use and worked closely with the
States to see to it that their Plans covered all points required by law
and regulation.
2 See eee ee ee eee ee
Office of Vocational Rehabilitation 187
By the end of 1955, all 88 State and territorial vocational rehabilita-
tion agencies had submitted new Plans and had had those Plans
approved.
EXTENSION AND IMPROVEMENT PROJECTS
During fiscal 1955, 70 extension and improvement projects in 38
different States were approved. Such projects involve the providing
of services to the disabled above and beyond those already available
in the State. About half of the projects for which extension and im-
provement grants were made had to do with specialized counseling
services or specialized programs for facilitating the rehabilitation of
seriously disabled persons such as the mentally ill and the epileptic.
About one-fourth of the projects were concerned with the improve-
ment of medical consultation and supervisory methods and techniques,
the development of organized programs for demonstrating the employ-
ment potential of the disabled, and research into techniques to aid in
the rehabilitation of the seriously disabled.
The remainder of the extension and improvement projects involved
the establishment of sheltered workshops, rehabilitation facilities and
other activities designed to improve various types of programs and
services to the disabled.
EXPANSION GRANTS
The expansion grant, which is dedicated to a substantial expansion
of the nationwide services available to the civilian handicapped, played
an important role in the Federal-State vocational rehabilitation pro-
gram during fiscal 1955. During that year, 60 projects were initiated
in 388 States for which Federal expansion grant funds were provided.
Funds were made available on the basis of two Federal dollars for each
State or local dollar involved in the project.
About one-third of the expansion projects were undertaken by the
State vocational rehabilitation agencies themselves, the remaining
two-thirds being developed by the State agencies in co-operation with
voluntary nonprofit organizations. Thirty of the projects related to
the establishment or expansion of sheltered workshops and rehabilita-
tion facilities. Among these facilities were speech and hearing cen-
ters, adjustment training centers for the blind, and facilities for other
types of seriously disabled persons.
INTERAGENCY COOPERATION
Public Law 565, amendments to the Social Security Act, and allied
legislation enacted in 1954 provided a framework for closer coopera-
tion at the grassroots among the vocational rehabilitation, public
188 Department of Health, Education, and Welfare, 1955
i tcc at Ae ABTA
assistance, and old-age and survivors insurance programs. Such
cooperation made itself felt in a very concrete manner during 1955.
The social security amendments brought into being the “disability
freeze” program which—as of June 1955—saw more than 60,000 per-
sons referred to State vocational rehabilitation agencies by district
offices of the Bureau of Old-Age and Survivors Insurance.
The “disability freeze” is designed to protect the benefit rights of
persons in employment covered by the social security law who are
unemployed over a long period of time because of disability. State
and territorial vocational rehabilitation agencies play a two-fold role
in the “disability freeze” process. They determine whether or not an
applicant for “freeze protection” has a disability which qualifies him
for such protection. Secondly, they seek to rehabilitate the applicant
af he desires rehabilitation services and is eligible for such services.
As of June 1955, working agreements between Old-Age and Sur-
vivors Insurance and State vocational rehabilitation agency offices
had been completed in 33 jurisdictions. And vocational rehabilita-
tion agencies in 46 States or territories had been designated to make
or share in the making of “disability freeze’? determinations.
The Office has sought to foster the same sort of cooperative rela-
tionship with public assistance program officials as it has with those
of the old-age and survivors insurance program. It has made funds
available to conduct surveys in selected areas with a view to deter-
mining how many of those on public assistance might be helped by
vocational rehabilitation.
Working with representatives of the State vocational rehabilitation
agencies and of the State public assistance programs, members of the
Office and Bureau of Public Assistance staffs prepared a guide de-
signed to foster the best possible cooperative relationship between the
State vocational rehabilitation and public assistance programs. The
guide was scheduled for release during 1956.
Special Projects: Research and Demonstration
Public Law 565 made it possible to launch a number of pioneering
research projects into disability problems of nationwide significance.
The first major step into research of this nature was taken in Jan-
uary 1955, when the Secretary of Health, Education, and Welfare
announced the appointment of a 12-member National Advisory Coun-
cil on Vocational Rehabilitation. Mary E. Switzer, Director of the
Office of Vocational Rehabilitation, was named chairman of the Coun-
cil. The Council’s purpose—as set forth by law—is to make recom-
mendations on applications for Federal grants in partial support of
research and demonstration projects which show promise of contrib-
Office of Vocational Rehabilitation 189
uting to solution of a vocational rehabilitation problem of concern
to a number of States.
During the period between its inauguration and the close of the
1955 fiscal year, the Council considered a total of 46 applications for
special project grants. The Council recommended approval of 22 of
these applications, disapproval of 17 and, as of June 1955, had deferred
action on 4 others pending the receipt of further information. Fed-
eral funds awarded during 1955 for special research and demonstra-
tion projects totaled approximately $299,000. The recipient organi-
zations provided at least one dollar for each two dollars in Federal
funds awarded.
APPROVED RESEARCH AND DEMONSTRATION PROJECTS
Of the 22 applications for Federal special project grants recom-
mended for approval by the Advisory Council, there were 18 for which
funds were actually awarded during 1955. Following are the organi-
zations to which special project grants were awarded, the Federal
sums awarded, and a brief description of each project:
Association for the Help of Retarded Children, New York City;
$48,700 for determining the effectiveness of rehabilitation training in
fitting mentally retarded young adults, who cannot be helped by other
means, to become employable.
New York State Psychiatric Institute, New York City; $27,823 for
establishing and conducting a mental hygiene clinic for the deaf, the
purpose of which is to help the deaf to overcome their work and social
handicaps.
Georgia Division of Vocational Rehabilitation, Atlanta; $15,756 for
study and development of employment opportunities for blind persons
in greenhouses and nurseries.
Federal Employment and Guidance Service, New York City ; $9,399
_ for study of employer policies and practices in hiring handicapped
- workers.
Division of Services for the Blind, Topeka, Kansas; $6,519 for
evaluation of the effectiveness of music therapy as a part of an overall
program for rehabilitating the blind.
National Rehabilitation Association, Washington, D. C.; $18,770
for study of functions and training needs of vocational rehabilitation
counselors and the development of an accrediting system under which
needed training may be offered.
American Foundation for the Blind, New York City; $10,019 for a
survey of professional and administrative personnel in work with the
blind with a view to improving standards.
Saranac Lake Rehabilitation Guild, Inc., Saranac Lake, N. Y.;
$10,800 for a survey of the rehabilitation needs of disabled persons
in rural areas.
190 Department of Health, Education, and Welfare, 1955
National Industries for the Blind, New York City; $16,000 for de-
velopment of a demonstration program of industrial homework for
shut-ins in a rural area (the State of Vermont).
University of Pennsylvania, Philadelphia; $26,568 to conduct a
pilot program in speech and hearing rehabilitation in connection with
an existing rehabilitation center. |
Adelphi College, Garden City, New York; $20,320 to study handi-
capped workers who are or who have been associated in some way with
two industrial plants on Long Island with a view to determining the
importance of some social factors in job placement and community
life of the handicapped.
Anderson Orthopedic Hospital, Arlington, Virginia; $5,000 to plan
a program of services for a national pilot demonstration center in
the metropolitan Washington, D. C. area.
University of Connecticut, Storrs, Connecticut; $15,000 for deter-
mining the problems encountered in child-care and family relations
by mothers with orthopedic handicaps and to develop work simplifica-
tion methods for performing activities involved in caring for children.
Idaho State Department of Health, Boise, Idaho; $6,500 for deter-
mining the extent of physical disability of vocational rehabilitation
significance among seasonal workers migrating annually from the
Southwestern United States to the Snake River Valley.
The John Tracy Clinic, Los Angeles, California; $14,500 for study-
ing the intellectual and personality factors associated with success in
lip reading.
George Washington University, Washington, D. C.; $2,851 for a
survey of the metropolitan Washington area to determine the type of
pilot rehabilitation center which would best serve as a model for the
Nation.
Institute for Crippled and Disabled, New York, N. Y.; $17,716 for
the purpose of developing an evaluation and work classification sys-
tem for cerebral palsied adults.
Attending Staff Association of the Los Angeles County Hospita,
Ine., Los Angeles, California; $26,719 to explore the vocational re-
habilitation potential of respiratory and nonrespiratory poliomyelitis
patients.
The Training Program
The Office’s training program, inaugurated at the beginning of
the year, is designed to train “short-supply” personnel for work in
the rehabilitation field, to improve the knowledge and skills of profes-
sional personnel already in the field, and to develop an increased
awareness of rehabilitation philosophy and methods among personnel
in related fields.
Office of Vocational Rehabilitation 191.
By June, 1955, 80 Federal grants for the teaching of rehabilitation
subjects had gone to institutions: and organizations throughout the
country. These grants totaled $536,000. In addition, about $254,-
000 in grant funds were made available for 1,074 long and short-
term traineeships in priority occupational fields. Funds were also
granted for the holding of 37 workshops and institutes—short-term
training sessions in such fields as nursing, physical therapy, occupa-
tional therapy, rehabilitation center direction, work for the blind,
speech therapy, rehabilitation counseling, and social work.
Among the fields in which teaching grants were awarded were social
work, rehabilitation counseling, occupational therapy, physical ther-
apy, rehabilitation center administration, public health, supervision
of vending stand operations, clinical psychology, teaching of blind
piano tuners, rehabilitation of the tuberculous, rehabilitation nursing
and the supervision of rehabilitation training facilities.
INTERNATIONAL ASPECTS OF TRAINING
While the Office has been active in fostering the training of badly-
needed vocational rehabilitation workers at home, it has not overlooked
the need for such workers in those foreign countries which have re-
quested assistance in solving their own rehabilitation problems. Work-
ing in co-operation with the State Department, the United Nations and
the Foreign Operations Administration, the Office last year planned
and supervised the rehabilitation training programs of 100 individuals
from 28 different countries.
The foreign trainees enrolled at educational and allied institutions
throughout the nation, the Office maintaining constant contact with
them and holding itself ready to work out any problems that might
arise during the course of training.
The foreign nationals’ training program has shown concrete results
as those who have participated have returned home to practice what
they have learned. In countries like Egypt and the Philippines, for
example, former trainees head up the national rehabilitation programs
established—to a great extent—through their efforts. In Guatemala,
a physician who took training in this country in 1953, directs a reha-
bilitation center he was instrumental in establishing.
Guidance and the Setting of Rehabilitation Standards
Providing grants-in-aid for the expansion and improvement of
rehabilitation facilities in communities throughout the country, help-
ing State agencies to develop effective operational plans upon which
to base their rehabilitation programs, training badly-needed special-
ists in the field of vocational rehabilitation—these are some of the
192 Department of Health, Education, and Welfare, 1955
broad “direct action” activities of the Office of Vocational Rehabili-
tation in its overall nationwide attack against disability.
Of equal importance, however, are those Office activities which
involve consultation, guidance and the setting of standards . . . activ-
ities designed to assist the State vocational rehabilitation agencies to
meet specific problems of every conceivable type.
GUIDANCE AND STANDARDS: THE SEVERELY DISABLED
The past year was a fruitful one for advances both in delineating
the nature of the problems of the severely disabled and in recommend-
ing techniques and methods for coping with these problems.
Fifty-four of the 88 State rehabilitation agencies sent representatives
to the 8th Annual Guidance, Training, and Placement Workshop
sponsored by the Office in Washington, D. C., in June 1955. The
Workshop explored the broad range of rehabilitation counseling activ-
ities, paying particular attention to improvement of means and
methods for evaluating eligibility of applicants for rehabilitation
services. } :
Office specialists concerned with the blind conducted training ses-
sions or helped in the conducting of such sessions for personnel work-
ing with the blind in areas throughout the country. Counselors from
State vocational rehabilitation agencies as well as from associated
voluntary groups were among those in attendance at these confer-
ences—all of them dedicated to fostering higher standards and more
“know-how” in dealing with the problems of the blind. ‘Twelve such
conferences were held during the year.
During 1955, there were a number of significant developments in the
very complex field of hearing impairment. The Office cooperated with
the American Hearing Society in the development of a workshop on
community organization for attack on the problems of the hard-of-
hearing and the deaf. More than 200 hearing specialists from all
over the Nation participated.
One of the important projects for assessing the problem of the
“shut-in” whose disability prohibits his leaving his home environ-
ment—was a survey which resulted in publication of the report: The
Study of Programs for Homebound Handicapped Indiwiuals. The
report, which was made to Congress, was prepared by the Office in
collaboration with the Social Security Administration, the Office of
Education, the Public Health Service, and the American Printing
House for the Blind.
Stimulating Employment for the Handicapped
Kmployment is, of course, the end product of the vocational re-
habilitation process. During 1955, the Office greatly expanded its
Office of Vocational Rehabilitation 193
efforts to help State vocational rehabilitation agencies and interested
private organizations to foster the placement of the handicapped.
THE EDUCATIONAL CAMPAIGN
Considerable emphasis was placed upon educating the public in gen-
eral and the employer in particular as to the abilities of the handi-
capped if placed in the right job. This emphasis was fully in keeping
with Public Law 565 which provides that the Secretary of Health,
Education, and Welfare, the Secretary of Labor, and the Chairman
of the President’s Committee on Employment of the Physically Handi-
capped “shall develop and recommend methods which will assure
maximum utilization of services . . . in promoting job opportunities
for such individuals.” As the representative of the Secretary of
Health, Education, and Welfare, the Office has cooperated fully with
all governmental departments in this great educational effort—an
effort which has been continued on a sustained year-around basis.
Grassroots promotional efforts—both in keeping with P. L. 565 and
with earlier legislation—have actually been brought to bear by joint
effort in communities throughout the country: Governor’s Commit-
tees on Employment of the Physically Handicapped, the State voca-
tional rehabilitation agencies, State public employment service
offices, veterans employment service representatives of the Department
of Labor—all of these have been and are working together to foster
the employment of the handicapped and an understanding of their
problems.
But the educational campaign to foster employment of the handi-
capped has not only concentrated upon broad, promotional objectives
but also upon providing immediate, specialized assistance to placement
specialists concerned with the handicapped. Examples of this type
of assistance are numerous. One such was the issuance by the Office
of a publication entitled Small Business Enterprises for the Severely
Handicapped, which is now in wide use. Another is the work being
done by the Office in surveying industries throughout the country with
a view to obtaining information which will help the blind to secure
employment and then making the results of such surveys available to
the public in general and the blind in particular.
THE VENDING STAND PROGRAM
The Vending Stand Program for the Blind, one of the most im-
portant media through which employment opportunities have been
developed for the blind, continued to have healthy growth during
the year. Future years hold promise of even greater expansion be-
cause of the 1954 amendments to the Randolph-Sheppard Act, the law
under which the program operates.
Reports from all States showed that a record 1,721 blind vending
stand operators were employed on June 30, 1955, as compared to 1,659
194 Department of Health, Education, and Welfare, 1955
site ORIN Ta ne NUM Acasa Ae
at the end of the preceding year. The blind operators had a net
average income of $2,300 during the past year, an increase of more
than $100 a year per operator.
The operators and their employees earned $5.3 million in the year
ending June 30, 1955, an increase of $500,000 over the preceding year.
Gross vending stand sales were $23.5 million as compared to approxi-
mately $22 million the preceding year.
Much progress was made during the year in implementing the
amendments to the Randolph-Sheppard Act. The amended Act pro-
vides for preference to blind persons in the operation of vending
stands on Federal property as well as in Federal buildings, and re-
quires that the head of each agency in control of Federal property
prescribe regulations to assure preference for licensed blind persons
in the operation of vending stands on such property.
The preference regulations for property under the control of the
Department of Health, Education, and Welfare were developed and
issued, and the Office provided consultation to officials of a number
of other departments and agencies to assist them in the development
of their preference regulations.
Regulations governing the operation of the program by the State
licensing agencies were developed and issued and guide materials were
prepared to assist the State agencies in developing new application
forms (for licenses) and new State rules and regulations.
OTHER PLACEMENT ENTERPRISES
The Office has worked steadily with the U. S. Civil Service Com-
mission in promoting job opportunities for the handicapped in the
public service. Promotional and information materials relative to
the handicapped have been sent to the approximately 15,000 appoint-
ing officers of the Federal establishments.
State vocational rehabilitation agencies are also working closely
with public employment service offices throughout the country in the
placement of the handicapped. Most public employment agencies
maintain selective placement services designed to help the handi-
capped find suitable jobs.
Advances in the Field of Medicine
and Physical Restoration
Nineteen hundred and fifty-five saw advances both in the medical
treatment of the handicapped and in the expansion of medical facilities
for service to them. This expansion was carried through under the
terms of Public Law 565.
Office of Vocational Rehabilitation 195
PROGRESS IN AIDING THE MENTALLY ILL
With mental health becoming a problem of increasing concern to
the American people, the Office during 1955 played a vital role in the
development of plans whereby the relationship between State mental
hospitals and vocational rehabilitation agencies could be strengthened.
The planning was carried through upon the premise that thousands
of mental patients previously doomed to prolonged existence in mental
hospitals could and should be restored to a community environment
and to productive employment.
During 1955, seven States requested that the Office make funds
available for the employment and training of vocational rehabilitation
staff to work with the mentally ill. Office personnel rendered consulta-
tive services to some of these States and, in addition, co-operated with
the National Institutes of Health, the Veterans Administration, vol-
untary agencies, and mental hospital staff personnel in providing
training courses for State agency people concerned with the mentally
ill. |
Concrete steps were taken to accelerate and improve the rehabilita-
tion of patients in State mental hospitals with the holding of regional
workshops in Washington, D. C.,in March and April 1955. The March
workshop was attended by administrators and administrative person-
nel from the State vocational rehabilitation agencies, State hospitals,
and State health departments in Maryland, the District of Columbia,
Virginia, West Virginia, North Carolina, Kentucky, and Puerto Rico.
The April workshop was attended by operating personnel from these
same agencies.
Cosponsored by the Office, the National Institute of Mental Health,
and Saint Elizabeths Hospital, the workshops were devoted to a de-
tailed discussion of common problems relating to establishment of
policy for rehabilitating the mentally ill, the allocation of responsi-
bility among the organizations involved in the rehabilitation process,
and case management. The success of these workshops was such that
three additional regional conferences in the mental health field were
scheduled for 1956.
PROGRESS IN OTHER FIELDS OF MEDICINE
The Office placed major emphasis during fiscal 1955 upon strength-
ening cooperation with the American Heart Association and its affili-
ates with a view to improving the techniques and methods for re-
habilitating persons suffering from heart disease. This cooperative
effort has helped to foster the establishment of work classification
units In many communities—units which aid the heart patient by
evaluating his disability, estimating his work capacity and developing
196 Department of Health, Education, and Welfare, 1955
with him plans for his future work and for meeting the problems of
daily life.
The work classification unit is a rehabilitation team generally com-
posed of a cardiologist, a medical social worker, and a vocational
counselor. Its operating base may be a community hospital, a Heart
Association affiliate or a public agency. The work classification unit
is a development of the post-World War II era which has more than
proved its effectiveness.
Medical Officers on the Office staff participated in the development
of medical standards and policies for use in determining the eligibility
of clients for the “disability freeze.” (See page 188 for discussion of
the “disability freeze” program.) These officers worked with the
medical advisory committee of the Social Security Administration
and also helped to direct training courses for medical and medically
related personnel of the State vocational rehabilitation agencies.
THE DEVELOPMENT OF REHABILITATION FACILITIES
In 1954, Congress amended the hospital survey and construction
provisions of the Public Health Service Act of 1946 so that Federal
funds could be used to assist in the construction of rehabilitation
facilities. Under the terms of the amended law, the Office has col-
laborated with the Public Health Service in the development of reg-
ulations and informational materials as guides to the States in the
planning and survey phases of the facility construction program.
As of the end of 1955, eight States had submitted broad, comprehen-
sive plans for the construction of various types of facilities. No
specific proposals for construction of individual facilities were re-
ceived during the year. However, the amended law provides that
funds for such construction shall remain available during 1956 and
it is anticipated that a number of individual project proposals will
have been received prior to the end of that year.
International Cooperative Efforts
In addition to its assistance to foreign students pursuing rehabili-
tation study programs in this country, the Office during 1955 engaged
in a number of activities designed to help other countries cope with
various disability problems.
During 1955, the Office worked with the Foreign Operations Admin-
istration in recruiting rehabilitation specialists for employment in
Latin-American countries. Two such specialists were sent abroad
on long-term assignments, one to provide services to the tuberculous
and the other to provide such services to the blind. The Office also
recruited specialists for short-term assignments in Mexico, the purpose
;
Office of Vocational Rehabilitation 197
of such assignments being to assist the Mexican government to develop
special services to the blind, the deaf, the hard of hearing and amputees.
Office personnel also assisted in the development of consultative and
training programs in a number of countries as well as in fostering
the expansion of such programs.
The Office played a leading part in the development of the Inter-
national Recommendation on Vocational Rehabilitation which was
unanimously adopted by the International Labor Organization’s 38th
annual session in June 1955.
In its development of policies and plans for assisting foreign coun-
tries to meet their rehabilitation problems, the Office has worked
closely with both public and voluntary agencies in the international
field. Among such groups are the American Foundation for Overseas
Blind, the International Society for Welfare of Cripples, the World
Veterans Federation, and the international associations for physical
therapy and occupational therapy.
198 Department of Health, Education, and Welfare, 1955
Table 1.—Number of referrals and cases, by agency, fiscal year 1955
[Corrected to September 15, 1955]
Referrals Cases
During fiscal year During fiscal year
en Closed from active load ce
Agency ! Not | ing | Total |——___ ting
pied | eek) ata ee After | Bef at
cepte oa fter | Before
Total | for | cepted te (receiv-| pong. | rehabil-/ rehabil- ar
serv- A ing 71%" | itation | itation| _ °
ices | SCV: | year? | cory. | bill, | plan | plan | Year®
ices ices) | tated | initi- | initi-
ated 4 | ated 5
United States, total.__|257, 521 | 82,269 | 81,886 | 93,366 |209, 030 | 57, 981 6, 441 | 17,035 | 127, 573
AAD AINA ieee see eee ee ee 6, 740 2, 511 658 3, 571 6, 897 1, 960 202 323 4, 412
Adagkanirs ¢ 2 FS Sitee Er Cr res 113 24 42 47 107 16 23 6 62
Arizona:
Géneral: 2.03 Sa 1, 089 290 219 580 639 203 21 15 400
Blind. eee 132 41 35 56 110 24 6 1 79
Arkansasc ees cas. pr ats 4, 819 1, 531 2, 234 1, 054 3, 884 1,111 131 578 2, 064
California.) ae eee 20,027 | 38,426 | 18,455 | 3,146] 8312] 1,618 569 809 5, 316
Colorado:
General ee fe eae 1, 841 771 493 577 | 1,655 457 216 80 902
Blind fee Soe. Fak ea 222 53 10 159 154 21 3 2 128
Connecticut:
General tae ee 2,676 | 1,405 509 762 | 3,409 801 143 352 2,113
Blind: Beet te ee 191 90 56 45 160 50 8 102
Delaware:
Gencrals= arses 1, 190 555 405 230 | 1, 234 456 14 81 683
Blinds se wee 37 12 13 64 18 38
District of Columbia____-.-- 1, 791 529 709 553 1, 366 302 118 170 776
Florida:
Generales. oe eee 7,644 | 2,301 | 2,488] 2,855] 5,519} 1,619 216 524 3, 160
Blind. BIS palb ihe aed © 3, 201 331 1, 823 1, 047 840 240 40 49 §11
Georrig eae: 2k teh ee 20,879 | 5,003 | 6,687] 9,189} 11,866] 4, 552 262 996 6, 056
Hawaii
Generali: -S22 58. anes 833 208 307 318 586 159 35 5 387
IVC tt wrote oar Pear 52 30 7 15 116 24 8 14 70
Idabo:
General f.2 03 oe 1, 329 191 543 595 428 122 20 9 277
Blind eae Vase ee 44 16 16 ie 35 9 4 1 21
TWinoisg uy ak eas Se 7,998 | 4,889 | 1,017] 2,092 | 10,898] 3, 406 185 598 6, 709
Indiana:
Genorala t2 sat oe 2,623 | 1, 458 527 638 | 4,070 941 74 352 2, 703
: Blinds) eae 250 85 60 105 251 45 18 10 178
owa:
General. 255 arse Se 3, 248 | 1,039 613 | 1,596} 2,740 651 54 209 1, 826
BiG ae oe eee 133 19 31 83 66 19 7 1 39
Kansas:
Generals »- hn ee 3, 159 888 991 1,280 | 1,914 550 40 182 1, 142
Link: See ee ees 219 43 60 116 156 30 4 6 116
ICON TN CKY sex nose ee 3, 452 813 | 1,085} 1,604] 2,240 459 64 208 1, 509
Louisiana:
Generale soehu-co 222 wee 3,920 | 1,598 959 | 1,863} 4,766] 1,174 84 350 3, 158
Blind eens Bee 668 141 205 322 464 11 11 351
Maine
General. s22- 292 ves 1, 552 360 289 903 914 198 25 75 616
UNG eee et ees 164 16 88 60 64 18 5 i] 40
Marvianden 5 sv ec Sees 3,964 | 1,924 951 1,089 } 4,626] 1,075 156 761 2, 634
Massachusetts:
Gentraltzs ee 3,241 | 1,011] 1,183] 1,097] 2,633 717 114 241 1, 561
Blindes fee ae eee 263 84 37 142 254 45 2 14 193
Michigan:
Generals eee eee 6,758 | 3,062 | 1,314] 2,382] 8,447} 2,862 374 154 5, 057
Blind atti See 8 8 433 116 35 42 240
Minnesota:
General ot see ee 4, 205 897 | 1,282} 2.076 | 3,367 582 111 98 2, 576
IBIING Eee eee re pene ees 342 135 146 61 414 92 15 48 259
Mississippi:
Generali. et. 2 ees 2) 50k 711 860 | 1,000 | 2,906 876 76 218 1, 736
Bind: See ieSa. rae 701 408 186 107 787 202 23 23 539
Missouri
General: 3.22 ee es 2,764 |} 1,480 719 666: |) 13,1128 2177 110 239 1, 586
Blind Mae lesa eae en 441 165 155 121 448 113 25 16 294
Montana
General ease eee 1, 360 454 374 532 | 1,086 390 14 22 660
Blind eee seca ae 175 ily) 138 20 67 16 6 UT 34
Nebraska:
Genoralese. ere ee 1, 049 712 129 208 | 1, 563 518 29 15 1, 001
lind Sacer 3 30 31 52 9 31 2 0 59
Nevada ote te Eee ae 298 70 93 135 131 46 10 0 75
See footnotes at end of table.
Office of Vocational Rehabilitation 199
Table 1.—Number of referrals and cases, by agency, fiscal year 1955—Con.
{Corrected to September 15, 1955]
Referrals Cases
During fiscal year During fiscal year
Re- P Re-
: Closed from active load
Agency ! ae al SL OtS. main-
ee Not ing nett ing
cepted | _ 2° at ete After | Before at
p J
Total for cepted | end (receiv- rehabil-| rehabil- end
serv: for of in Reha- | itation | j of
o) iidelrs it ete g bili- ation | itation year 6
ices ices'3 SOry- sated plan plan
ices) initi- | initi-
ated 4 | ated 5
New Hampshire:
Gencraieee. - 522 220 140 162 425 95 16 68 246
SUNG ae a 42 24 5 13 75 14 6 8 47
New Jersey:
Creneraieass Biss #2 2, 484 973 842 669 | 2,550 619 84 371 1, 476
18100 | 2 SURO Se 4 132 148 150 471 93 26 35 317
New Mexico:
EGR Rs 1, 065 217 386 462 615 225 17 26 347
2G a a 151 31 41 79 102 28 17 6 51
New York:
CSI ee eee RS 14,935 | 4,921 | 4,708] 5,306 | 11,885] 3, 424 300 lenlsolo 6, 790
23H 0 | ae a 957 356 223 378 805 243 51 59 452
North Carolina
Cpneralers sas. Fo 6,782 | 3,489] 1,948] 1,395] 7,810] 2,689 124 545 4, 452
(SLANG (oe ea SS a ea 914 382 341 191 1, 463 306 28 14] 988
i Wakota-t tes 30k 952 249 179 524 587 173 3 17 394
0:
energie ee 4,820 | 1,512 | 1,321 1,987.|) 3,525 | 1,152 58 209 2, 106
Mirae 442 234 83 125 715 141 38 54 482
Oislaagmas. 22> -2.-..--...- 6,164 | 2,084} 2,832] 1,248] 6,178] 1,160 86 549 4, 383
Oregon:
(General. - = - =. 222... 5,018 | 1,088 | 1,730 | 2,250] 2,646 577 63 211 1, 795
3 Oa 162 3 51 68 144 34 3 103
Pennsylvania:
(emerale = seve 28k 16,058 | 6,010 | 4,445 | 65,603 | 11,934] 3,337 490 987 7, 120
(iracheeeeee eet ee 1, 774 367 692 7155/2 11, 269 149 86 197 837
Paerto Rieo= 25 ss. jy2_-..- 4, 464 OL ek 070.1) 2; 483) 1) 2,747 814 69 129 1, 735
Rhode Island:
Grenlerals ens 2) oe 773 403 244 126 955 307 117 34 497
15:00 0(0 by hes cen Me eee eS 30 29 0 1 173 25 5 8 135
South Carolina
FON Crane BOR tee 4,868} 1,446] 1,549] 1,873 | 4,296] 1,313 77 161 2, 745
Te WIG = te aa 335 112 127 96 252 75 9 41 127
South Dakota:
Citlen eee a 664 178 61 425 704 141 7 15 541
[S)ehto bcs. a Se ee 105 19 62 24 61 17 4 6 34
Tennessee:
Gpariera lt te, 8 5,075 | 1,951 1,273 | 1,851 | 4,510] 1,695 88 200 2, 527
tense 756 177 162 417 602 118 13 67 404
Texas:
ON OV Ale sto oe 10, 177 3, 021 2, 565 4, 591 9, 560 2, 189 135 820 6, 416
lee 1,172 312 368 492 793 267 42 64 420
TREN) 51008 Nts IES SR ea Sea 1, 152 307 232 613 1, 080 254 32 19 775
Vermont:
Genetnl ee eee es 767 2a0 198 312 556 110 31 38 377
Blinds 22062 2 sb2t co 25 45 26 10 9 65 15 2 6 42
Virginia:
Generdie os nee 10,431 | 3,074} 3,841] 3,516 | 6,761 1, 821 108 | 1,051 3, 781
Tel b Ua | es ee ae 364 110 61 193 186 69 4 5 108
Washington:
Ct 6,915 |} 1,119} 1,899 | 2,897) 3,370 860 123 229 2, 158
EAC ee 161 36 57 68 169 24 4 44 97
Westavinginiae .2--222...... 11,116 | 7 2,896 |7 2,498 | 5,722 | 7,333} 1,607 84] 1,313 4, 329
Wisconsin: 3
romerale ce hee an 3,610 | 1,388 884 | 1,338] 4,671 1, 365 149 50 3, 107
ing iss Se ee 167 68 48 51 253 81 44 7 121
Wi vOUrmg@evce oslo 2-22 ok 868 157 400 311 444 153 25 3 263
1 In States which have 2 agencies, the agency under the State board of vocational education is designated
- SC eal and the agency under the State commission or other agency for the blind is designated as
66 in. Cee
2 Services declined, services not needed, individual not eligible, individual needing services other than
vocational rehabilitation, referred to other agencies, migratory shifting of the individual, etc.
3 Eligibility for rehabilitation not determined.
4 Closed after rehabilitation plan was agreed upon and approved by supervising official; received rehabili-
colar service but never reached the point of employment because of personal factors, illness, aggravated
isability, ete.
§ Closed prior to initiation of rehabilitation plan, because of indifference of individual; probable increase
in degree of disability; loss of contact, etc.
6 In process of rehabilitation on June 30, 1955. T Adjusted.
200 Department of Health, Education, and Welfare, 1955
a
Table 2.—Federal grants made to State vocational rehabilitation agencies and
cooperating nonprofit organizations, fiscal year 1955
a : pee eS j
p uppor and im- xpansion
State or Territory Total grants provement grants 1
grants
Motaleye rete aes ie ee Soe Se eee $22, 153,088 | $21, 242, 164 $347, 966 $562, 958
PUGH osc 000s ely panier abun SA Sates Ase PE se eat 687, 890 643, 825 28, 636 15, 429
ATIZONG Ua SORE Fo Nees 6 eS ae ee 120, 708 109, 598 7, 425 3, 685
Arkansasr tants seta ek |e eae peual les 437, 238 410, 124 17, 556 9, 558
Califor it 22eSt } SAS Rer Yor hee tS eee ee 1, 799, 036 1, 746, 0572222 eee 53, 979
Colorados: See ie BAU E oe ees Sees re 161, 608 149, 593 6, 765 5, 250
Connecticut = bones se aa a ee ee 296, 351 276; 369. | ee 19, 982
Delaware. ere. a Pee Oe ee ae ee 132, 088 127, 088 5. 000: 222 ee eee
SOLOTIDG ws Sceentennn | eee et eeceeuenceseeeee 629, 810 593, 315 23, 495 13, 000
Georcia Fe a oe ee See ee 1, 531, 419 1, 510, 262 21,.157.3|saane eee
BAS EEN DY fear en De ste e SS ek Ae aa a SO Rae ahi ae 53, 311 63; 811 |. 52 ee
TUM OIS Se oe Lee ee Oe ee Ee ce 1, 274, 632 1, 2372881) | 2 See 36, 751
Trdianaes. 02. 2s RR So. et Se ay See ee 346, 377 3415377 | so eee 5, 000
TOWOhe Sos. Sain he ee 291, 768 291, 768. |- 22 eS eee
IK nSaste 5. 2 Nis cb ee ee NE a ee ee 206, 850 195, 784 11,066... 23832 sea oe
Kientuick Vite. : Jae ho ee ee ee ee 201, 376 159, 418 27, 267 14, 691
LOUisiana= ee en Pe os Pe ee 476, 474 464,329 (22 2. 22 eee 12, 145
Moainetene. 28 522 2 otk oo Dns Sanat ee a 82, 114 82,114 |. o2-23 elon ee
Maryland? .2.2. 1 bees Se eh ae ee hy See 305, 001 305, 001 | cue eee
Wiassiehiisetts [sence Ue ok Ss eee ea ae 252, 403 245, 042 7, O61. |... See ee
Michigan's 265k. bates oe wee eh ES ak BO 989, 708 952, 491 18, 917 18, 300
Minnesota2 2 2) oe Ee ee ee 283, 615 260/049 | 2 oS 23, 566
IMISSISSID Dll eee eee ee eae ee ee 265, 434 265, 434 |... 2222222 ae eee
Missourietite tc 22 kek vs ee ee ee 494, 681 396, 080 1,119 97, 482
Montana. 2fts2es beh «Sch WA ae ee. 126, 419 124,019 |--eeee 2, 400
Nebraska: 5*... 2.5282. oe aS ek 187, 673 173, 330 7, 743 6, 600
ING@Vada ES eo. 2 steer ae otaes Ne 2 ee 25, 346 25,346 |4....5 2S
NeweHampshire:-4-22 2.42 Soh ee ee ae 42,073 42,073 |-Secc ene ee eee
New Jersey.2te Leek so hae De Le ee 386, 741 3/3; 156 |-2 eee 13, 585
INe@wislexicomes 2. £ 28s fol 2 See ee ee ee 104, 581 885 247> | 2 See 16, 334
ING wisYOT katt i we 8b See ee SS Pee 1, 276, 835 1, 276, 835 .|_2 5. oe ee |
North: Caroling.2 cbse 2225 a ee eee ee 618, 200 618, 200: | cee le |
NorthtDakota 224.2522 25 eee ee oe 103, 049 99/972. |. eee cee 3, 077 |
KOLA on Oe Se ees Me iS Ie eae oe es Pa 389, 750 389, 750 |. 2..-...: 2. | eee
Oklghomates: 22 PE 2k ee ae Oe 529, 175 514, 667 14,.508: 4.2. See
Oregon Sits Mee. eee cel Me Ee 2 eee ke ee 310, 218 278, 881 11, 000 20, 337
Pennsylvania- oof ce 0 2 ee ee 1, 582, 406 1, 449, 672 37, 937 94, 797
Rhodevdslnndse: |e eee eR is a 92, 515 86, 103 6, 412. |S ones ose
South Carolina: .f. 528 fo ee ee ae ae 417, 681 417,681 | poten eee
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Saint Elizabeths Hospital
DvuRING THE YEAR just past there has been no essential change in the
organization of the structure of the hospital. The medical care is
assigned to the three Clinical Branches and the Medicine and Surgery
Branch, the latter of which includes the tuberculosis service. All the
other activities of the hospital, such as Social Service, Nursing, Dietet-
ics, Maintenance and Construction, are auxiliary to the work of these
four branches.
Before considering the detailed operation of the hospital a few gen-
eral remarks are in order, particularly in view of the fact that January
15, 1955, marked the One Hundredth Anniversary of the reception of
patients at Saint Elizabeths Hospital. The Centennial of any institu-
tion is worth remarking, and particularly so in the case of an insti-
tution which has meant so much to the Government of the United States
and to American psychiatry as Saint Elizabeths Hospital. It was the
desire of the hospital administration to carry out a dignified observance
of the Centennial, and particularly to pay respect to the memory of
the founder of the hospital, Dorothea Lynde Dix. Steps were taken to
organize a non-profit Centennial Commission, which was fortunate in
securing generous donations from the Ford Foundation, the Smith,
Kline, and French Foundation, the Medical Society of Saint Eliza-
beths Hospital, and from several interested and generous individuals.
A scientific program of two days was held in May. Papers were
read and greetings were brought by distinguished psychiatrists, both
from the United States and from six foreign countries, several of them
former members of the staff. The scientific contributions were of a
high order, and plans are being made to publish them in an anniversary
volume. In connection with the scientific program the patients wrote
and acted an historical drama, entitled “Cry of Humanity”, based on
the life of Dorothea Lynde Dix. They likewise devised and built the
203
204. Department of Health, Education, and Welfare, 1955
ee ee ae
stage sets and planned the choreography. The play received a great
deal of public attention from dramatic critics, and a portion of it
was shown on a coast-to-coast television program.
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American Printing
House for the Blind
As Tue Official schoolbook printery for the blind in the United States,
one of the principal functions of the American Printing House for the
Blind, in Louisville, Ky., is the extension of its services to the schools
and classes for the blind through the Federal act “To Promote the
Education of the Blind.” ‘This act, originally passed in 1879, au-
thorizes an annual appropriation to the Printing House to provide
free school texts, tangible apparatus, and supplementary materials
necessary in the education of the blind. Allocations of books and
materials are made to the several schools on the basis of their enroll-
ments. Only those pupils may be registered whose vision comes within
the accepted definition of blindness as follows: “Central visual acuity
of 20/200 or less in the better eye with correcting glasses, or a periph-
eral field so contracted that the widest diameter of such field subtends
an angular distance no greater than 20°.”
The Printing House maintains large catalogs of Braille books, Talk-
ing Books, Braille music publications, large-type texts, and tangible
apparatus. The schools for the blind are thereby provided with a
rich collection of educational material from the kindergarten through
high school. There are approximately 7,520 blind children enrolled
in the residential and public school classes for the blind being served
by the Printing House.
During the 1955 fiscal year, Braille books, educational periodicals,
and music made up approximately 58.26 percent of the materials re-
quired by the schools; Braille slates, Braille writers, maps, and other
mechanical devices about 17.42 percent; Talking Books about 4.37 per-
cent; and large-type books about 17.35 percent. Approximately 2.40
percent was used for miscellaneous items,
215
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Gallaudet College
GALLAUDET CoLLEGE is devoted to the education of deaf persons who
because of their handicap are unable to make satisfactory progress in
schools and colleges for hearing students. The college, located in
Washington, D. C., is the world’s only college for the deaf. In addi-
tion to education, it conducts research into the educational problems of
deafness. It consists of the Kendall School and the college proper.
KENDALL SCHOOL
Primary and secondary schooling is provided for deaf children in
the Kendall School, which also serves as a laboratory school for teach-
ers training in the college. The oral method of instruction is used for
all pupils except those who make no progress under it. Enrollment
last year was 87, of which 73 came from the District of Columbia.
GALLAUDET COLLEGE
The college, established in 1864 by act of Congress, offers the associ-
ate’s degree after 2 years of study and a bachelor’s degree in the liberal
arts and sciences. The Preparatory Department provides the senior
year of high school for students who are unable to obtain it in the State
schools for the deaf. The Graduate Department of Education offers
a master’s degree and a professional diploma in the education of the
deaf to students with normal hearing. Total enrollment in the college
last year was 285 with students from 43 States, the District of Colum-
bia, and 9 foreign countries.
868636—56——15 217
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Howard University
Howarp Universiry was established by an act of Congress dated
March 2, 1867. Its charter provides “That there be established in the
District of Columbia, a university for the education of youth in the
liberal arts and sciences.” The university has afforded an opportunity
for advanced education to students from every walk of American
life without regard to race, creed, color, or national origin.
The university is composed of a college of liberal arts, a graduate
school, and now, beginning with chemistry, is offering work leading
toward the degree of Doctor of Philosophy, and schools of engineer-
ing and architecture, music, social work, medicine, dentistry, phar-
macy, law, and religion. Summer and evening schools offer work in
adult education.
ENROLLMENT OF STUDENTS
During the academic year 1954-55 Howard University served 5,144
students : 3,774 during the regular school year, 1,101 in summer school,
and 269 in adult evening classes. Of the 4,204 students in the 10 regu-
lar schools and colleges, 3,710 were seeking degrees. Of these, 3,384
came from 42 States and the District of Columbia. The remainder
came from 30 foreign countries, the British West Indies, and United
States possessions.
The 3,384 students from the continental United States:
emotes Tce SI 8 nn tr ee el cee ed Ie 73
RET IGTICI@ (SLA LCS ee 518
Meee E Central States. clo ee ee 187
SSUES gc UD) i 9 io, ee el 56
SIE IGG i os We a et a ee eee 2, 044
Reem Central Statesccro.) occiccies TC esso S00) eysapetl wore 250
EEL EN OMY ALS A106. ct ae as cl eee Eel TK AO on 220
Nb ones eco hE Bier cle Sorin 12
Ne aes 0 0 ge a PO 2 24
3, 384
220 Department of Health, Education, and Welfare, 1955
The 326 students from outside the continental United States came
from Africa, Asia, Europe, and North and South America. Fifty-two
students came from Egypt, Gold Coast, Liberia, Nigeria, and Sierra
Leone; 17 from India, Indonesia, Iran, Malaya, Syria, and China; 18
from Belgium, England, Germany, Greece, Holland, Poland, Latvia,
Turkey, and Yugoslovia; 2 from Canada; 16 from British Honduras,
Dominican Republic, Cuba, Haiti, Panama, and Spanish Honduras;
88 from British Guiana and Brazil; 148 from the British West Indies;
and 34 from the Canal Zone, Hawaii, Puerto Rico, and the Virgin
Islands.
THE COMPREHENSIVE PURPOSE OF HOWARD UNIVERSITY
From the beginning, Howard University has welcomed students
from every area of American life. It has likewise welcomed any and
all such persons to membership in its faculties, on the basis of their
ability and character as individuals.
One of the major purposes of the founders of Howard University
was the admittance of Negro youth, among others. The institution
has pioneered in offering professional training to Negroes. During
its 90 years, Howard University has been the only university of public
support in the Southern States which has offered to a substantial num-
ber of Negro youth any approximation of the wide scope of under-
graduate, graduate, and professional studies characteristic of Ameri-
can State institutions.
Since 1948, public institutions in 12 Southern States, hitherto closed
to Negroes, have opened their doors; but in 1955 Howard University
still enrolled a larger number of students in accredited schools of
medicine, dentistry, pharmacy, music, engineering and architecture,
and social work than in all other universities and colleges together in
the entire area of the Southern States.
VETERANS
There were 626 veterans enrolled at Howard University during
1954-55, an increase of 52 over the previous year. Of this total, 147
were veterans of World War II and 479 were veterans of the Korean
conflict. The number of veterans of World War II decreased by 207,
while there was an increase of 259 Korean veterans.
ARMY AND AIR RESERVE OFFICERS’ TRAINING CORPS
The Army Reserve Officers’ Training Corps enrolled 224 students
during 1954-55. The fourth year course was completed by 24 students
in partial fulfillment of the requirements for commissions as second
lieutenants. The Air Force Reserve Officers’ Training Corps enrolled
253 students. In June 1955, 30 students were commissioned.
Howard University 221
THE FACULTY
During 1954-55 the university was served by 459 regular teachers,
268 giving their full time.
From the beginning in 1867, the founders invited to the faculties of
Howard University men and women, on the basis of their ability and
character as individuals, without discrimination as to sex, race, creed,
color, or national origin. Today, there are men and women represen-
tative of every racial stock in America and of virtually all the major
religious affiliations in the world.
But it was a major purpose of the founders to employ Negro teach-
ers, among others, on every faculty. ‘Today the Negro members of
the faculties, exclusive of the school of religion, constitute a group of
Negro teachers larger by far than all the Negroes so employed in all
other American universities combined. The existence of this group of
Negro university teachers has been an inspiration to the Negro people
for more than three-quarters of a century, and membership on one of
these faculties has been the first employment of many of the most
outstanding Negroes in the public life of America. From them came
the founder of the first blood plasma bank in the world, the most distin-
guished Negro industrial chemist in America, the first Negro governor
of an American possession, the first Negro in the Secretariat of the
United Nations, the first Negro member of the United States Court of
Appeals, and the first Negro cultural attache in the diplomatic service
of the United States to a major European nation.
CONTINUATION OF THE BUILDING PROGRAM
In January 1955 the College of Dentistry moved into its new build-
ing, designed to accommodate 400 students. Modern equipment is
installed to accommodate 225 students. Facilities include four pre-
clinical laboratories, a 62-chair general dental clinic, a library, cafe-
teria, and student and faculty lounges. This building and its
equipment were made possible by an appropriation of $2,565,221 by
Congress.
During the year 1954-55, also, the construction work for transform-
ing the old general science building into a building equipped for mod-
ern instruction in physics was completed and the installation of equip-
ment had proceeded far enough to enable work in physics to begin
during the second semester. This work was made possible by an ap-
propriation of $320,000 made by Congress in 1948 and 1949.
Work continued on the new Pharmacy and Biology-Greenhouse
Buildings with the goal of having them ready for occupancy in the
fall of 1955. Construction was begun on the new Administration
Building and the building for the School of Law.
222 Department of Health, Education, and Welfare, 1955
Plans and specifications for the new pre-clinical medical building
had been completed, and the plans and specifications for the Audi-
torium-Fine Arts Building and the new Men’s Dormitories were well
under way.
RECOMMENDATIONS OF FREEDMEN’S HOSPITAL SURVEY
The Findings, Conclusions and Recommendations of the Freed-
men’s Hospital Study Commission, appointed by the Secretary of
Health, Education, and Welfare, were finished and made available in
May. The Chairman and members have listed and carefully studied
every important question bearing upon the future of Freedmen’s
Hospital and its relation to the School of Medicine of Howard
University.
GRADUATES
During the year Howard University graduated 514 persons. Since
its origin it has graduated 18,709 persons. These graduates are at
work in 43 States and 27 foreign countries. They constitute a cross
section of the leadership of the Negro people. Together, these gradu-
ates constitute the largest and most diversified group of trained Negro
public servants related to any single institution in the world.
SERVICE IN FOREIGN COUNTRIES
Howard University students and teachers have associated daily with
teachers and students representative of every race and color and many
of the major creeds of the world. In recent years many of those
teachers and students as individuals and in groups have traveled on
missions to many countries in Europe, Asia, and Africa, as now in
India, Iraq, and Indonesia. Again and again the responsible leaders
in Government and the friends of America have acknowledged their
services as being of great value to their country and to the cause of
democracy.
Detailed Contents
THE SECRETARY’S REPORT
Page
EL rents ATH. Cer. Ye ieee ee ty is es 2
PPD UCRTIONOOS Toe ot lee Se ee ee Be 8
PROGRESS IN SoctAL SECURITY AND PuBLIC WELFARE__________________ 10
Re eee IN PROGRAM: DEVELOPMENT... 2) oe ee 12
DR I VEANAGUMENT.. oo cin o ote ee Ce eee ee eee 16
TABLE 1.—Grants to States: Total grants under all Department of Health,
Education, and Welfare programs, fiscal year 1955__.__.__.___________ 18
SOCIAL SECURITY ADMINISTRATION
ee eee WEL Y--LN- 1955... 222. 202A. SOLVING youonil) 6 19
PemenAtt ADMINISTRATION IN 1955_.....-....-..-.--_._.____--______- 23
OLD-AGE AND SURVIVORS INSURANCE..-_-______._____________ 25
ne ROCEAM 16 WOING”.. 0 22 ee 27
Peeerries ane pencnt AMOunts... ~~~. so one ot ee eee yee
nnMEnna Ol TOVICCU Ss ieee 28
me Coverage of the Program: =. ==:=-:22ssss2s2ssesseezeeeeeeeee5e-- 28
Tacome and-Disbursements = ==-s222ccccscceesal2 eee Pees 29
Mee rING THE. ROGRAM. 22.622 e ele tk ee ee wee ie ee en ees 29
Pecruatine the 1954 Amendments. -.-_-.___........-.---..--.------- 29
memmmerering tie Disability “Hreeze” = ee ee 30
Pener soministrative Dévelopmicnts. = ee 32
PENNE ROGRA MARS 8 | sclipeaao bcs icowe tuse beteailoecaahuwtis 33
A Strupy or THE MINIMUM BENEFIT____________-_______--__---_-_--- ee 34
PeGisLA TIVE |LEVELOPMENTS IN 1955__- =. 36
Pee ADDIS LANG bol) fe SOR etiieol BTOVINAUS DS Gah oe 72 38
Dente ee COLIC ASSISTANCB: 56+ 0 tee ot Bln erect aneeeseee 38
TRENDS IN CASELOAD AND EXPENDITURES___-_____-----L-_----- eee 40
ner Rennie a Oe ede 30) BRU AISS CRBS DEB SIORIOW hI VO 40
faa to Pependent Children— 1 TL S22 so ed poe cae 40
eer see OT AD. PO fee ORT BUTE ey Pe 41
Aid to the Permanently and Totally Disabled_____._..-.-_--------+--- 41
Sremerar Aesistances =~: oso ooo scccscccceccccrccc4 ee SUES L pes 41
Errect on Pusuic ASSISTANCE OF THE ExpaNpING OASI PRrocRaM fe og 4l
Aged Persons Receiving Both Insurance and Assistinedsisese: Soin osu cibs 42
Families With Children Receiving Both Insurance and Assistance- - -~--- 43
eee JV ULOPMENTS2 ooo on ene wee cee e eens eens 43
224 Department of Health, Education, and Welfare, 1955
Page
Improvement in Services to Needy Individuals___.__._._.-.-.------------- 44
Increased Understanding of the Public Assistance Program Through
Citizen Participation... 228.8 wee ee en oe oo 49
Improvement in Public Assistance Administration.-___._--------------- 50
Improvement in Methods of Carrying Out Federal Responsibilities in
Working “With: States: 225 2 se i Le Pa ee 51
Defense Welfare Services! ivi 2. @- e554 22 ee. ee ES eee 52
CHILDRENS BUREAU. 3.20 b2 S222 See ee eee 53
SomME Facts anp Fiaures ABout CHILD LIFB_______________--.------ 53
CHILDREN. WITH. SPECIAL-NEEDS 221 2 CUCL S_USs_ ToDo eee 55
FEDERAL INTERDEPARTMENTAL COMMITTEE ON CHILDREN AND YOUTH-_-_- 56
PROGRAMS..OF THE BUREAU. 22. 050 oe ese oe ee ee ee aye
Research in Child Lite. te ee 57
Maternal and Child Health Services—__ = --____ = _ 2 58
Crippled Children’s Services.c. Jics244- ces caer ae ~~ 2 oe ua 60
Child Welfare Services: -.0 oo. ou Soe eS Se eee 61
Juvenile Delinquency Service Program. + 22.2.--224!-4-L 22 eae 63
International Cooperation. 22. fo. 04 oon Seka -- he 65
FEDERAL CREDIT’ UNIONS. 2. noe ee eee eee 66
PROGRAM ‘OPERATIONS 2 Uso ee ee ee eee 67
STRENGTHENING THE PROGRAM___. 222. eu lee ee eee 69
OTHER SOURCES OF SOCIAL SECURITY INFORMATION____________-_-___-- 70
Generals - oo oe ee ee ee ke ee Se eee 70
Old-Age and Survivors Insurance. _ W252. 220-2 0 Mt ee ee 70
Pablic Assistance. js 2c cece bet ge yh re ee 71
Child. Health and Child Welfare: 220-52 >0 2-2 eee ras
TaBLE 1.—Social Security Administration: Funds available and obliga-
tions Incurred, fiscal years 1955.and.1954_— _._-__ 4 se eee pl
TaBLE 2,—Financing social insurance under the Social Security Act:
Contributions collected and trust fund operations, fiscal years 1953—55___ 72
TaBLE 3.—Old-age and survivors insurance: Estimated number of families
_and beneficiaries in receipt of benefits and average monthly benefit in
current-payment status, by family group, end of June 1955 and 1954_- 73
TaBLE 4.—Old-age and survivors insurance: Number and amount of
monthly benefits in current-payment status at end of fiscal year 1955,
“and amount of benefits paid in fiscal year 1955, by State_.___.-_____- 74
TasBLE 5.—Old-age and survivors insurance: Selected data on benefits, § ~
, employers, workers, and taxable earnings for specified periods, 1958—55__ 5
TABLE 6.—Special types of public assistance under plans approved by the .
' Social Security Administration: Number of recipients and average
: payment, June 1955, and total payments to recipients, by program and Aba
eiState, fiscal: year 1955._.-.2.-- 5... = ake
TaBLE 7.—Special types of public assistance under plans approved by the |
Social Security Administration: Federal grants to States and total ~~
expenditures and percetit is Federal nb by program and State; > oo94
Miscal-year- Lospasiaiai?. ban soosivea! so nalviewd avi ee i RR
oy
ba
Detailed Contents 225
Page
Taste 8.—Maternal and child health and welfare services: Grants to
States for maternal and child health services, services for crippled
children, and child welfare services under the Social Security Act, by
fee And State, fiscal year 1955.2... -_.._-_ eeeeeeis bores 80
TABLE 9.—Federal credit unions: Number of members, amount of assets,
amount of shares, and amount of loans outstanding Dec. 31, 1935-54__ 81
TaBLE 10.—Federal credit unions: Assets and liabilities, Dec. 31, 1954,
VT SS ut ya a tn i A eI SR 81
Cuart 1.—Estimated percent of aged persons with money income from
employment, social insurance, and public assistance, December of se-
Ce RG) Foe at ti es ie oe eee te eh ee Se 21
Cuart 2.—Major causes of dependency of public assistance recipients,
PINDER ee et oe ee ed Be 44
CuHart 3.—Education and salary of public assistance caseworkers_-___-_-- 48
PUBLIC HEALTH SERVICE
Pemmtmonne tH NATION ooo ceccee esse tol sc aee Sawin eee eee 83
meee eiiatiiages, and .Divorces..:o........0......... Fue iS 84
fees BOGCRAMS AND, RESPONSIBILITIES...._._..................-..<_.-- 84
REN ts a et ee ee ee ge 85
nem cCniiCs. - Wo tere hese vn ee ee Pe ee eee 85
MEEEECORICMMSONNED, 6) 2 oo be ee ee 87
Smee TPH NOTHODS..... 02... 0062s e eth dee ee 88
meee tiness'and Mortality. 2-0-2222 22 88
EIS hag ll Se gill dit Sle Mc Se le a RON Ss 89
(LEIS us ul Tal gig a lll Cg i Al a pcg aes 89
Pee WALL INSTITUTES OF HEALTH. ~~. vessllets muesie_vevant 90
Meeerom.OF b10L0GICS: STANDARDS. 25 2005. Leesa e Lee ede 90
DE OMNTH I Wt ol eS 91
Semeenror RNseAncH GRANPSieorcc!3-to 2 een seemed! —satuesestoce dae 91
INSTITUTE OF ARTHRITIS AND METABOLIC DISEASES______-------------- 92
DEE EO GINCNUS 2. | 0 Oo Te eee 92
MITT TOICCUN ele eek ee eee 93
MINT OTE 2 cece scccsse LFA AVAL S MOUS 94
meet nemotnerapy Program._..............cnnwurlk wisssilice 94
meenterveand Clinical Research............-..-.-.---44e2244ueus i we 94
Biostatistical and Environmental Field Studies_____________________-- 95
eeecs voported by. Grants_...........-----s 99
Peer or MENTAL HEALTH... .__...—._- ~~~ -oeee---baenn’ heen tn .99
226 Department of Health, Education, and Welfare, 1955
Page
Training and, Community, Services. -6.56-<4lewt -bids-baan- deseo tee 100
Clinical, and. ‘Laboratory. Research.