.... JK 421 .I6 no. 8 B 1,674,148 The Inter-University Case Program Cases in Public Administration and Policy Formation ICP CASE SERIES: NUMBER 8 The Veterans Gas Ration William H. Riker UNIVERSIT. OF MICHIGAN MAY 17 1957 Distributed for the ICP by UNIVERSITY OF ALABAMA PRESS Drawer 2877, University, Alabama LIBRARY 1. The Inter-University Case Program was organized to encourage and promote the use of case studies as an aid to the teaching and practice of public administra- tion and policy formation. Its objectives are: 2. . 3. 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Information on ICP publica- tions appears on the inside back cover. Inquiries may be addressed to The Inter-University Case Program, No.3 Thomas Circle, Washington 5, D. C. The Veterans Gas Ration Copyright, 1952, by Harcourt, Brace and Company, Inc., New York All rights reserved hobs br c 6.L Econ Direct 1.13 56 38-1168 1 JK 421 .Ib no.8 THE VETERANS' GAS RATION CONTENTS OPA AND THE GASOLINE RATIONING PROGRAM EMERGENCE OF THE VETERANS' GASOLINE RATION ISSUE CRYSTALLIZATION OF ATTITUDES CRYSTALLIZATION OF POLICY SOME QUESTIONS Bibliographical Note 749 751 752 755 758 759 OPA and the Gasoline Rationing Program The general purpose of the rationing pro- grams operated by the Office of Price Adminis- tration during World War II was to ensure that the limited supplies of commodities made scarce for civilian use by the needs of war were distributed in accordance with principles con- sistent with the public good and the effective prosecution of the war. Various principles were involved and invoked, but the two of most general applicability were equity and essen- tiality. Under the first of these two principles, for example, every resident of the United States was entitled to receive a ration coupon permitting the purchase (at one period) of five pounds of sugar. Under the second principle, for example, ration tickets permitting the pur- chase of rubber boots were issued only as needed and only to workers in essential indus- tries like mining and chemicals. All OPA rationing programs had a rationale or set of rationales that included a blend of these two principles. The gasoline program was no exception. Group eligibility for special gaso- line rations was determined by a Gasoline Eligi- bility Committee (described below); the actual program was administered by the Gasoline Branch of the Automotive Division of the Rationing Department of OPA. The branch was responsible for equating the limited sup- ply of gasoline with demand by adjusting the value and distribution of ration coupons to the changes of gasoline supply allotted to civilian use by the Petroleum Administration for War. It maintained current statistical information on civilian use of gasoline; under the guidance of the Eligibility Committee, it determined the eligibility of various classes of civilian users for gasoline rations and the amounts to be allotted to eligible users; and it endeavored to maintain adherence to the eligibility rules by instruction and supervision of the local boards responsible for the actual issuance of rations. The relations between PAW and OPA, it should be noted, were in theory simple, in fact both complex and usually strained. In theory PAW, which controlled the production of gasoline, fixed the amount for civilian use and certified that amount to OPA each quarter; OPA had complete charge of the distribution of gasoline to civilian consumers. In fact, OPA was frequently involved in the supply problem, PAW in distribution. Mutual recriminations. and vexations were common. These frictions increased the burdens that the Gasoline Branch of OPA had to bear in any event. One of the major functions of the Eligibility Committee was the determination of what categories of car-owners were to be eligible for gasoline so that uses vital to the war and essen- tial civilian functions would not be excessively curtailed. The broad system of eligibility worked out to express this purpose consisted chiefly of three general types of priorities by which the local boards were to be guided in gasoline distribution: "C" rations for those car-owners whose driving was essential to the war or to public health and safety, "B" rations for those whose driving was essential as a means of getting to work or important in cer- tain other ways, and "A" rations for all car- owners regardless of need. "C" rations were, of course, the largest and "A" rations the smallest; both "B" and "C" were individually adjusted in accordance with need (though there was a top limit on "B" rations but not on “C”), while the “A” ration was the same for all. The assigned value of the coupons was changed with variations in allotments of sup- ply by PAW. Inasmuch as the two major types of priorities for extra gasoline (“B" and "C" rations) were, while broad in coverage, still rigid in definition, a number of other special categories were estab- lished to cover cases of special need. They took the form of amendments to the general eligibility rules and were regarded as specific and limited directions for extensions of an RELATIONSHIPS: RELATIONS WITH THE PUBLIC 750 “A” ration to be used by the local rationing boards as a guide to and in lieu of personal judgment; they covered such contingencies as travel for medical care, transport of automo- biles upon change of residence, demonstration of cars by dealers, and so on through about twenty-five special cases. Over and above these special amendments, the local boards were granted fixed quotas of "hardship" rations which they could use in individual cases not covered by the rules so that uncommon cases of need for gasoline could be taken care of. Among the people on the Gasoline Eligi- bility Committee responsible for making these rules, a number of professional attitudes or habitual ways of thinking were developed which aided in the translation of the general purpose of gasoline conservation and the dis- tribution of the limited supply into specific rules for the local boards. For example, a more elaborately rationalized explanation of the three broad categories of priorities was devel- oped. In this rationalization, the central con- cept was "essentiality," meaning essentiality to the war effort or the home front. It was said that first call on and the largest amounts of gasoline were given to the most essential users and that all exceptions which were granted over and above the "A" ration should be explainable in terms of relative essentiality. The "C" ration was directly essential for the prosecution of the war and preservation of the economy; the "B" ration was indirectly essen- tial for these ends, although to the general public and even to many local ration boards the only distinction was one of quantity of gasoline permitted. Even the "A" ration itself, which could perhaps have been most easily rationalized as equitable distribution to all car operators after the essential uses were taken care of, was also poured into the essentiality mold. It was not generally regarded as a politi- cal necessity arising because car-owners without special claim could not, need not, or should not be altogether deprived of gasoline, while there was gasoline to be had; nor was it usually viewed as an administrative necessity obviating the need for issuance of millions of individual specialized rations for persons whose needs. were "essential" but no larger than the amount provided by the "A" ration: rather the "A" ration tended to be rationalized by the officials concerned as a method of administering the distribution of gasoline for essential personal uses or, alternatively, to relieve the strain on essential public transportation facilities by use of private cars and for the essential conserva- tion of 23 million autos for the indefinite dura- tion of the war. Special ration amendments were also ration- alized with the idea of essentiality. Each special extension included in the eligibility rules was described as essential to some war-related activ- ity or essential civilian need. The officials main- tained this tight logic in spite of the fact that one or two of the special amendments, insti- tuted over the opposition of the Eligibility Committee, seemed to be the result of politi- cal pressures. Such, for example, was the grant of gasoline for representatives of the Farmers Union or the amendment issued to cover the case of one man whose usage of gaso- line was by no means essential as the OPA understood the word but who was a friend of one of OPA's essential supporters in the Congress. The latter case was unique; the former was opposed by the Eligibility Com- mittee, but debatable; in any event, there were at most no more than four or five special amendments which were in any sense forced on the Committee and the Branch by the OPA hierarchy or other agencies, so that in general the special amendments, like the basic regulations, were reasonably explicable in terms of the essentiality rationale. Another habit of thinking which developed from the consciousness of the gasoline short- age and the transportation bottleneck (on which subjects OPA personnel received fre- quent lectures by representatives of the PAW and the Office of Defense Transportation) was a kind of economy-mindedness. In some de- gree the goal of saving gasoline for its own sake became intermingled with the more pub- licized principles of equity and essentiality. The spirit of economy was emphasized also by a belief that special amendments were likely to destroy the equity of the system of priorities already established. Gradually, the people in the branch came to look upon themselves as partners with the Petroleum Administration for War in the conservation of an increasingly scarce war material. The attitude had a sound legal base, for the rationing power was de- rived from the allocation power, granted by Congress with the conservation of scarce ma- terials in mind. In any event, the branch con- tinually had to struggle with the difficulties of making supply and demand come out even: if special amendments were granted too freely, ration coupons would come to have no value and the system would break down. Thus the idea of essentiality and the con- sciousness of a need for conserving gasoline joined together to encourage a preservation of the existing relationships in the priority sys- tem and to discourage the establishment of new priority categories. For a variety of reasons, the rationale formu- lated by the Gasoline Eligibility Committee and used by the staff of the Gasoline Branch developed into a kind of religion. The Com- mittee operated with a good deal of freedom, and regarded the OPA hierarchy to which it was subordinate with constant suspicion. The protection of the rationale was thus protection of the Committee. Furthermore, to a consider- able extent, the leading people in the gasoline rationing program were imbued with a sense of dedication: inconsistencies in the logical structure were felt as moral flaws. And this atti- tude was reinforced by a sense of the desir- ability, in the face of possible litigation, of consistency that would stand up in the court- room. The Branch and its guiding Committee thus had a sense of mission and a coherence that acted as a counterpoise to any impulsive- ness or over-sensitivity to public or partisan political pressures on the part of the hierarchy. The members of the hierarchy respected the Branch and the Committee, though at times their patience was tried by the rigidity they encountered. Emergence of the Veterans' Gasoline Ration Issue The veterans' gasoline ration problem arose first as part of a general consideration of vet- erans' problem: by the top OPA management THE VETERANS' GAS RATION 751 in the summer of 1944, long before the vet- erans' gasoline ration question became a hot issue. A special committee was established by the Rationing Department to consider three different rationing problems in which special provision for veterans had been suggested; the committee formulated a policy statement (modified in practice in two respects later) which rejected preferential treatment for vet- erans as such. Presently, the Administrator referred to the Gasoline Eligibility Commit- tee the specific question of whether veterans should receive a special gasoline ration at the time of discharge from military service. On August 26 this Committee decided that vet- erans as such should not receive preferred treat- ment, but that the problem of veterans seek- ing employment deserved consideration. Sub- sequently, veterans and also discharged war workers referred to specific jobs by the United States Employment Service were made eligible for special rations. During the months that followed, the Eligibility Committee first de- nied and then granted special rations for entertainers visiting veterans' hospitals. A year or two earlier, it may be noted, the Committee had first denied and then granted a special ration for members of the Armed Services on furlough: this request had been made by the Army and Navy as a morale measure; the grant was rationalized on the grounds of essential business and social needs. But with the approach of victory in Europe, in the spring of 1945, agitation for a veterans' ration arose quite suddenly. After V-E Day, the discharge rate increased, and so did the agitation for the ration. It continued at a high rate for several months until it became for a time the most important issue in the Gasoline Branch and Eligibility Committee. During this same period other veterans' problems and promises began to be a major concern of the bureaucracy and the Congress. The Veterans' Administration was being re- organized; the Civil Service Commission was publicizing its program for veterans' employ- ment; criticism in the press and in the Con- gress of laws relating to veterans had risen to a new high; and agencies such as the Farm Security Administration, the United States Employment Service, even the Selective Serv- 752 ice were advertising what they could do for veterans. Elsewhere in the OPA new food busi- nesses, largely run by veterans, were being allowed extra sugar rations. Within this con- text it is understandable that a campaign for a special veterans' gas ration developed in a very short time. RELATIONSHIPS: RELATIONS WITH THE PUBLIC The most important pressure on the Wash- ington office came from the local ration boards. They were the ones who frequently wanted to be able to do something to help their neighbor- veterans, who wanted to be able to show at once their sympathy and their gratitude, and who found themselves stymied by the lack of proper authorization. When they, contrary to their own emotions, had to turn down veterans' Crystallization of Attitudes requests, they complained of their unpleasant position to district and regional gasoline repre- sentatives, and in many cases wrote letters directly to Washington to avoid the field hier- archy. The reports of the regional offices to Washington began to devote more space to this particular problem than to any other. The reports described the personal distress which the local board members felt when they had to turn down veterans to whom they had pre- viously given furlough rations; they pointed out that many boards were using the "hardship" ration to give what was in effect a discharge ration and that this caused considerable antago- nistic publicity for neighboring boards which were unable to make similar grants from their "hardship" quotas. Supplementing these written reports, field men visiting the Washington office often urged with considerable energy that something be done about this particular matter. They argued that the Branch had better issue an amend- ment to legalize rations that were being given anyway and that otherwise the Branch would lose the respect and obedience of the local boards. of the OPA operation. But at least a dozen Congressmen felt impelled to write to Ad- ministrator Bowles and a number of others made telephone calls on the subject; naturally, Congressional complaints were treated by OPA with respect. There was also some comment in the press on the fact that veterans received no special ration. Newspapers in many cities car- ried what the OPA people were accustomed to call "horror stories" on this particular lacuna. Very little of the pressure from the local boards or from the Congress seemed to be veteran-inspired. While the pressure from the field was great -greater perhaps than it had ever before been on any single issue connected with gasoline- and while the most important of the pressures on this issue were from the field men, still there were a number of other significant sources of agitation. There was considerable Congres- sional interest in the matter, although, of course, not as much as on many other phases Within the Washington office, the outside agitation and comment created several points of view: the legalistic, the fatalistic, and the benevolent. Much has been said and written about the OPA lawyers, about how they supposedly sabo- taged programs with an unduly legalistic ap- proach to administration, and about how they seemed unaware of administrative considera- tions. Various explanations have been given of this point of view. Some merely say in effect that lawyers have a different way of thinking from other folk; others point out that lawyers very understandably fought for the mainte- nance of an internally consistent system be- cause such a system would be easier to defend in court; while still others claim that lawyers as a class in OPA spent most of their time throughout its history fighting to retain and trying to regain the position of abnormal power which they had held in the beginning because of the intimate relationship of the first chief counsel with Leon Henderson, a position which they lost in part with the resignation of both men. Whatever may be the explana- tion of the phenomenon, and while its extent has been exaggerated, it is undoubtedly true that as a group, the OPA lawyers were strict constructionists, and a priori opposed to ex- ceptions and deviations. On the veterans' ration issue, it was the lawyers who were most inclined to hold the line regardless of outside pressures, and least willing to see any sub- stantive merit in the proposal. The lawyer assigned to the Gasoline Branch. and hence the lawyer most immediately con- cerned with the separation ration, James C. Hyne, was regarded as particularly critical- even for an OPA lawyer-over the gasoline "leakages" sanctioned, for the various reasons which have been described, by OPA adminis- trators. Hyne had come from private practice to OPA at its inception and had been for some months previous to the spring of 1945 pub- licly contemplating resignation. The reasons he gave for this proposed action (and these were accepted at their face value by the rest of the office) were that he could not properly perform his own function of aiding in conser- vation because OPA administrators from the top down were too political. He felt that an administrator should make a rational program (as he thought the Gasoline Branch had done in the beginning) and then should stick to it regardless of the pressures from Congress or the public-he spoke of them as "pressure groups." He complained that in a number of recent instances in which he had advised that the OPA stick to the "rational, logical pro- gram," his opinions had been summarily dis- missed by administrators at various levels in the hierarchy. What had seemed to him the final straw was a meeting of all higher profes- sional and administrative personnel of the OPA at which Administrator Bowles had spoken; it was Hyne's understanding that Bowles had urged the staff to go out of their way to listen to the advice of Congress and the public, to give in on the minor parts of the OPA program, so that the major parts of the program could be saved: but this inter- pretation of Bowles's speech should be con- strued in the light of its source. When the issue of the veterans' ration came up soon thereafter, Hyne was violently opposed to it. To him it seemed another prospective break in the concept of essentiality, another "loss of intellectual integrity." He argued that if rewards were to be given to veterans they should be financial and not involve the dissi- pation of a precious war material; and he com- pared the gasoline situation to food rationing. Why not give veterans an extra ration of meat points, he asked. In this he was strongly supported by his THE VETERANS' GAS RATION 753 superior, Aaron Lewittes, chief counsel for the Automotive Rationing Division and recently appointed advisor on veterans' affairs to the Deputy Administrator for Rationing. Lewittes, like Hyne, had been with OPA from the begin- ning; he too was a purist, and disgusted with the "politicking" by administrators, and he complained about the disregard of legal advice on substantive issues of policy. He did not talk publicly of quitting, and indeed the general policy of the Gasoline Eligibility Committee was largely of his making. As advisor on vet- erans' affairs to the Deputy Administrator he was, of course, strategically placed for opposi- tion to the veterans' ration. The party which might be called the “fatal- ists" included most of the administrators re- sponsible at some point in the hierarchy for gasoline rationing. Because of the gasoline situ- ation (or rather because of their estimates of actual and prospective gasoline supply and demand), they were reluctant to use any gaso- line for what they thought was a non-essential purpose; but, at the same time, they had respect for the pressures which were now being applied to them, and they were inclined to believe that OPA must make some concessions on minor matters; so they expected that they would give in somewhat to the pressure for veterans' gasoline before very long. The gasoline situation as they saw it was this: They believed that the gasoline shortage in the spring of 1945 was quite critical. It was admittedly not as serious as in the previous fall (which had been the worst period during the war) when usage was far in excess of quota every day. By hammering at the local boards and by fighting any efforts to broaden the eligibility for extra gas, the daily excess had been cut to half of what it had been at the worst point in the fall of 1944. Shortly before V-E Day (which was May 8, 1945), the Petro- leum Administrator announced that the "A" ration could be increased 50 per cent after V-E Day; this was not within his jurisdiction, but it had the psychological effect of a govern- ment promise that OPA was quite unable to over-ride. Later the Petroleum Administra- tor insisted, over the objections of OPA, that some 80,000 barrels per day out of some 130,- ooo extra being allocated to OPA after V-E RELATIONSHIPS: RELATIONS WITH THE PUBLIC 754 Day go to the "A" rations. This upset the logical balance of the gasoline ration structure and precluded any major improvement in the over-quota situation. The OPA, particularly the immediately re- sponsible planners in the Gasoline Branch, continued to regard the gasoline excess usage as so serious that, even after the reluctant increase in the value of the "A" coupons after V-E Day, they directed a campaign at the local boards to review "B" and "C" coupons to cut out all not really essential uses. The Gasoline Branch was in the ambiguous posi- tion of simultaneously acceding to an increase in what it termed non-essential use and at- tempting to curtail essential use on the ground that supply was short. This apparent incon- sistency in the rationing program worried them. They believed that any further "waste" of gasoline at a time when they were trying to make the local boards tighten up on issuance would seem so inconsistent to the local boards that the latter would come to disregard the instructions of the Washington office com- pletely. At the same time they were in the difficult position of having no idea of how much gaso- line would be involved in a veterans' ration. Arguably (though probably no one believed this), no extra gasoline would be used. Many local boards were giving separation rations under the guise of hardship rations, and many of them were giving in excess of thirty gallons for each veteran. It was possible that a vet- erans' ration would merely legalize usage of gasoline which was already a fact; but this was an extreme view. The best estimates of the probable cost of a separation ration varied (ac- cording to whether the estimator was in favor of the veterans' ration or not) from 2000 bar- rels a day to 6000 barrels (OPA was running over quota about 40,000 barrels a day). Thus, the separation ration probably was in itself of minor significance. Although any extra use seemed undesirable, what mostly worried the Gasoline Branch was the effect that an extra ration would have on their program of cut- backs on other types of coupons. They felt that the public misunderstood the state of gasoline rationing after the rise in the value of the "A" coupons and that the whole rationing program would be endangered by any further significant or publicized relaxation of eligibility regula- tions; the public might, they feared, become convinced that rationing was really unneces- sary. The two men most concerned at higher levels with policy-making for gasoline ration- ing, Max McCullough, the deputy administra- tor in charge of the Rationing Department, and Richard E. Youngblood, the chief of the Gasoline Branch, were impressed with the consideration of short supply and public re- action. But as the men who had to bear most of the public and internal OPA pressure, they were even more impressed with the way that the veterans' ration had become a popular and significant issue in a very few weeks. Both of them had been in responsible positions in the OPA long enough to be highly sensitive to public reaction about all phases of the pro- gram. They both thought that a major part of their job was the responsibility to make an unpleasant and unpopular program as pal- atable as possible without weakening its gen- eral effectiveness. Hence, they expected that they would have to give in on the veterans' ration and in effect they resigned themselves to a reluctant acceptance of what they felt was inevitable. They certainly did not think the veterans' ration was important enough to justify a public fight, even though they felt that it probably violated the concept of essentiality. Lower in the OPA hierarchy, there was not nearly the concern with pressures which Youngblood and McCullough felt. This was particularly true in the Gasoline Eligibility Committee. The Committee was composed of a representative of each branch in the Auto- motive Rationing Division, several lawyers at- tached to the Division, and the chief of the Eligibility Section (which was one of Young- blood's sections), Thomas P. Shelburne, who served as secretary. With the exception of Youngblood and Shelburne, the Committee members were more impressed with the gaso- line shortage and the probable effects on the public of what they regarded as “obvious waste" than with the recommendations com- ing in. For most of them there was a mental conflict between the philosophy which had been built up in the gasoline rationing pro- gram and the proposal for a veterans' dis- charge ration. They adhered to the concept of essentiality as the basis for gasoline allot- ments and looked upon this use as non-essen- tial. While they were thus predisposed to hold out longer than Youngblood and McCullough, they too became fatalists as the pressure in- creased. However, Lewittes, a key member of the Committee, never wavered in his opposi- tion. THE VETERANS' GAS RATION 755 of OPA officials were rather different from the attitudes of the general public, and of the local boards. The Gasoline Branch and Eligi- bility Committee included no veterans; but it is doubtful that the presence of veterans would have changed matters. As rationers of a scarce commodity, the staff looked on all new demands for gasoline as automatically suspect; after all, petitions for many exceptions were granted even though none of the officials was a representative of the petitioning group while the much larger volume of denials in- cluded some requests from occupational groups that were represented. One member of the Committee came to adopt a point of view different from that of the legalistic and fatalistic parties. This was Shelburne, the chief of the Eligibility Section of the Gasoline Branch, who, like everyone else, regarded the ration as non-essential and Crystallization of Policy had originally opposed it; but he came to be- lieve that the amendment should be made as a benevolent gesture. Shelburne was a man of forty or so, a former high school teacher and principal. He had embraced the philosophy of conservation and essentiality in the highest de- gree; once he had even threatened to resign over what seemed to him a wholly political eligibility rule which was ordered from the top of the agency. Consequently, he was at first opposed to the veterans' ration because he considered it wasteful. But he, like no one else concerned with policy-making on the subject, referred to veterans as "the boys." He wanted to do something for them. Once he was able to overcome his scruples about the waste of gasoline, he became the only enthusiastic sup- porter which the proposal for a discharge ra- tion had. Some members of McCullough's staff became tolerant or sympathetic toward the proposal, but only Shelburne was enthusi- astic. In closing this schematic account of the at- titudes toward the veterans' ration proposal, note should be taken of an omitted alternative. Some people felt that a fight on this issue would be bad for the general gasoline ration- ing program; Shelburne thought the proposal desirable as a benevolent exception to the rules. Apparently no one felt that the veterans should somehow qualify under the general ra- tionale, or that the rationale should be broad enough as a matter of principle to cover the veterans. Obviously, the attitudes of this group During April and May, 1945, letters from local boards and reports and letters from re- gional and district offices brought the issue of the veterans' ration to a point where some sort of action seemed to be required. Toward the end of May, McCullough polled his imme- diate staff on the subject in a meeting largely devoted to other matters. They all saw the problem in terms of the local board and Con- gressional suggestions and demands and it was finally agreed at that meeting that eventually some sort of token ration of, say, ten gallons be provided when the pressure became too strong to withstand. McCullough then talked this over with Youngblood, the chief of the Gaso- line Branch, and they then decided that an amendment must presently be issued to pro- vide for a veterans' ration. Youngblood felt that a ten-gallon ration would be worse than none at all and that the ration would need to be as large as the one customarily given on the largest furlough rations, that is, thirty gallons. McCullough definitely preferred the smaller amount, but he left the matter up to Young- blood to decide. The matter thus seemed to be settled by the responsible officials-the Deputy Administra- tor and the Branch Chief; but at this point an anomaly in the structure caused a delay of two months. A long time before, a procedure had been established under which all proposals for amendments changing eligibility for gasoline RELATIONSHIPS: RELATIONS WITH THE PUBLIC 756 rations were referred to the Gasoline Eligibil- ity Committee whose membership has been described above. In effect, the responsibility for such decision by the top officials of OPA, the Branch Chief or by the Chief of the Eligi- bility Section was delegated to this Commit- tee. In practice the primary function of the Committee was, of course, to guard against hasty pressures from above or from the out- side world. Youngblood, after reaching the decision with McCullough, proceeded to handle the matter through the established routines. Sev- eral days after his conversation with McCul- lough, he received a letter from a representa- tive of the Veterans of Foreign Wars in which it was proposed that veterans in rural areas be granted a sixty-gallon ration and veterans in urban areas be granted a thirty-gallon ration. This was the first and only suggestion made by a veterans' organization that came to him, and in fact about the only suggestion received in the Washington office during this period from either a veteran or a veterans' representative which touched on the issue at all. The letter was moderate in its tone and surprisingly enough it was never followed up, even though it indicated that further calls would be made on the matter. But Youngblood did not know this at the time. All he knew was that vet- erans' organizations had the reputation of be- ing most persistent and effective pressure groups. The letter worried him because he did not at all want to get entangled in a fight with them. Therefore, at the next weekly meeting of the Eligibility Committee (in the second week of June), he proposed a discharge ration amendment for consideration. It was discussed at some length. But the Committee finally voted it down with Youngblood's vote as the only "yea." The next week Youngblood brought the subject up again and this time also it was turned down by the same majority. Shortly after the second failure of the amendment, a letter from a Congressman strongly advocating a discharge ration was passed on to Youngblood and Shelburne from Administrator Bowles's office. In reply to it, Shelburne (still unconverted to the idea) at- tempted to draft a letter which would explain the opposition of the office to the idea in sufficiently persuasive arguments to satisfy the Congressman. This letter which summarizes the Branch's rationale reads in part as follows: As you know, the Office of Price Administra- tion is given each quarter a specific quota of gaso- line which is available for civilian rationing. We may not disregard this allocation without endan- gering the war effort and essential civilian ac- tivities. At the present time we are completely consuming the allocation granted to us and all indications point to the fact that our present con- sumption is running over our allocation. We un- derstand that between a million and a half and two million persons are to be discharged from the armed forces in the coming months. Obviously, an automatic discharge or bonus ration would cause a very substantial amount of gasoline to be consumed over and above our present consump- tion. We have made every effort under limited allo- cations to make gasoline available for necessary travel. A number of provisions which are already in effect are designed to meet the particular needs of members of the armed forces and veterans. Included among these are special rations for trans- porting members of the armed forces or veterans from Army or Navy hospitals, recuperation cen- ters or Veterans' facilities to places of recreation as a means of assisting in their recovery; special rations for transportation to interview a prospec- tive employer when referred by a recognized re- ferral agency; special rations for disabled veterans with additional rations for occupational travel. The "A" ration has been increased to provide as far as possible for personal necessity driving. We are daily receiving numerous complaints that the limitation on amounts made available for distribution seriously interferes with the ac- tivities of persons who need cars in order to carry on their occupations and make a livelihood. In many instances these occupations make substan- tial contributions to the war effort. I believe that it would be extremely hard to justify using a large amount of gasoline as a bonus or discharge ration where the necessity for such a ration is highly conjectural and, at the same time, to deny gasoline which is very badly needed for necessary occupational travel. This, of course, would apply likewise to veterans themselves who will need transportation for business purposes in automo- biles when they re-enter civilian occupations. This letter was never sent. Shelburne talked it over with Youngblood and Youngblood per- suaded him that it was not a very good case or at least not good enough to persuade the Congressman. But the chief effect of the Congressman's letter was to make Youngblood bring the pro- posal up before the Eligibility Committee. again for a third week. By now the fact of in- creasing Congressional interest and the fact of an increasing volume of complaints from local boards were sufficient to swing several of the members of the Committee over to Youngblood's side. Nevertheless, Shelburne, two lawyers, and two administrators from other branches of the Automotive Division still opposed the idea so that the proposal again failed. After this meeting, the Branch received a letter from a discharged officer complaining about OPA discrimination against officers. Since officers, unlike enlisted men, were dis- charged while finishing out their accumulated leave, they were technically eligible for a fur- lough ration at the time of discharge. Enlisted men, who remained on active duty until dis- charge, were not. Ration boards had been ac- customed to give one gallon of gasoline per day of leave or of furlough and, since this ex- officer had ten days of leave to finish, he had received ten gallons of gasoline. He then wrote an irate letter to the Branch in Washington complaining about the discrimination against officers because he had received only ten gal- lons of gasoline while many enlisted men he knew had received thirty gallons of “discharge ration." Shelburne, as chief of the Eligibility Section, wrote back to explain that the writer had confused the ration given to many enlisted men who had received a month furlough after overseas duty with a discharge ration, and that, in fact, such discrimination as existed was ac- cidentally in favor of officers rather than en- listed men. This correspondence brought to the attention of the Gasoline Branch a sore spot which it had not known about. The pos- sibility of what was in effect discrimination against enlisted men was not only repugnant in itself, but was also potentially the basis for a lot of condemnation such as the United States Employment Service was then receiving for a similar type of accidental discrimination. Within a few days of the receipt of this let- THE VETERANS' GAS RATION 757 ter, the Branch also received a request for legal interpretation of the furlough ration to deter- mine if terminal leave was properly a furlough and if it made an officer eligible for a furlough ration at the time of discharge. The legal staff, specifically Hyne, considered the problem and concluded that terminal leave was a furlough within the meaning of the regulation. This interpretation and the letter errone- ously charging discrimination, coming as they did at the same time and at the time the dis- charge ration was under consideration, im- pressed Shelburne tremendously. He was al- ready torn between his loyalty to the idea of essentiality and his benevolent impulses. Since officers were already entitled to what was in effect a discharge ration and since the Branch followed a general rule that it was impossible to repeal a specific type of eligibility already existing, he decided that the best thing to do would be to provide for a discharge ration which would equalize the status of discharged officers and enlisted men. Thereafter he be- came the most ardent supporter of the dis- charge ration. In spite of Shelburne's shift, the Committee, meeting on June 28, while agree- ing that the accidental discrimination was im- proper, still felt that, in the light of the supply situation, no discharge ration should be given to either group; the matter was left pending. A little later, in Washington, the Times Herald (which was the Patterson newspaper) described on the front page the difficulties of a veteran who was job-hunting. This man, so the story ran, was unable to use public trans- portation because of combat-incurred disabili- ties. Since he had had some trouble finding a job for which he was suited or which suited him and since the job-hunting ration was given by OPA regulation only for a specific referral from the War Manpower Commission, this veteran had to go back to the ration board several times to get gasoline. To the Times. Herald this was just another example of OPA red-tape and inefficiency. In spite of (or per- haps because of) a long history of antagonistic comment in the press, the OPA generally and the Gasoline Branch in particular were sensi- tive to newspaper publicity. Consequently, these stories carried more than a little weight with the people responsible for eligibility rules. RELATIONSHIPS: RELATIONS WITH THE PUBLIC 758 The story was passed about the Rationing De- partment and impressed the administrators from other branches on the Eligibility Com- mittee so that they became favorably disposed to the idea of a veterans' ration. At the next meeting of the Eligibility Com- mittee on July 5, Shelburne brought up the proposal for a discharge ration. Youngblood, who had become disgusted by his three fail- ures in sponsoring the proposal, had declared that he would not bring the matter up again and that he would wait until the pressure be- came so heavy that other people on the Com- mittee were enough interested to raise the question. He had expected that it would be several weeks or months before the matter arose. But now that Shelburne had changed his mind, Youngblood was glad to support the proposal once more. This time, the Committee voted unanimously to approve a discharge ra- tion; Lewittes, the chief legal representative on the Committee, was notably absent. Even the action of the Committee was not enough to settle the matter, however, for it was customary to submit important changes in the eligibility rules to the regional repre- sentatives of the Gasoline Branch for consider- ation and advice before final promulgation. Sometimes they were polled by mail; but since a meeting of regional men was scheduled for the week after the Committee approved the proposal, they were consulted on it at that time. At the meeting of regional representatives, there was heated discussion of the subject. Most of the twelve men were strongly in favor of the proposal because they believed that the misuse of the "hardship" ration should be legalized so that the gasoline allotted for hard- ship cases could be again used for its intended. purpose rather than for a quasi-discharge ra- tion and so that the local boards would not lose respect for Washington rules. But at least one of them, who was imbued with the phi- losophy of essentiality, protested long and stoutly. He lashed out against the action which he interpreted as a spineless submission to pres- sure. Some of the rest of the group resented this description and in consequence a very violent discussion developed around the issue. But the regional men finally voted for approval of a discharge-ration amendment. This vote was the culmination of the morn- ing session of their meeting. In the afternoon session, they were addressed by a representative of the Petroleum Administration for War, who emphasized the rather grave gasoline shortage and urged that every possible saving of gasoline be made. After this speech, one of the regional men proposed a reconsideration of the veter- ans' ration proposal. A second vote resulted in unanimous disapproval of the proposal. Shel- burne, who was both surprised and baffled by the turn which events had taken, told them that he would do what he could to consider their recommendation but that, since the Eligibility Committee and the Deputy Ad- ministrator had already approved the ration, it was highly likely that it would not be pos- sible to abide by the vote of the regional officials. No real effort was made to follow the final recommendation of the regional men. Two weeks were consumed in preparing a procedure for the local boards to follow, in ironing out procedural problems and in getting clearance of responsible officials and staff officers in OPA. The only hitch in the process of getting clearance of the amendment was a long dis- cussion between McCullough and Lewittes, when Lewittes refused to sign. Because of this incident, Lewittes resigned as McCullough's advisor on veterans' affairs. Complete clearance was obtained, the amendment was printed, and finally issued on August 3, 1945. Two weeks later the war with Japan came to an end and gasoline rationing was abandoned. Some Questions The rationing of scarce supplies is a type of regulatory activity in which the penalty for weakness is likely to be death. If rations are issued substantially in excess of supply, or even moderately in excess for any long continuing period, the system will break down completely. In view of this perpetual danger, enlargement of the eligibility classifications on the basis of sympathy for individual problems is a treach- erous path to follow. The rationer's best pro- tection against his own generosity is adherence to a rationale, to a set of criteria that will serve to reject most applications. But regulation, perhaps especially in a dem- ocracy, can come to a disastrous end if it be- comes too logic-bound. The OPA recognized this truth by its allowance of quotas for hard- ship rations to be issued by the local boards. The question raised by the veterans' ration problem was whether this general release mechanism was adequate. In more general terms, the question is whether and how to accommodate exceptions that receive a high degree of public support to a tight rationale. Specifically, for example-had the Gasoline Branch permitted its rationale to harden into dogma? had the OPA hierarchy permitted its integrity to be infringed? Conversely, was the Gasoline Branch properly adhering to prin- ciple? was the hierarchy being properly and democratically responsive to the public will? The same generic problem has an organiza- tional facet as well. The device used in the gasoline rationing program is a standard one -the delegation to a committee of responsi- bility for decisions on applications for excep- tions. Such committees prevent impulsive ac- tion and guard consistency. Normally, as a re- sult, they serve as protective devices-they pre- vent undue embarrassment to the administra- tor in denying requests; but to serve this pur- Bibliographical Note pose, the committees must have a fairly free hand. Obviously, if an administrator over-rules his committee frequently (or even on just one or two very crucial matters), he can no longer hide behind it. By the same token, if the com- mittee does operate freely, and with consider- able finality, it is apt to achieve an independ- ent life of its own; it becomes an enclave in the hierarchy, and its responsiveness to general policy is diminished. This was the situation in this case, and the reader may well ask himself whether he is satisfied with the way the Gasoline Eligibility Committee operated, if Youngblood was right THE VETERANS' GAS RATION in accepting its decision, or if McCullough should have been bound by it. In considering this problem, it is well to remember that it is part of a larger problem. One of the things we presumably mean by phrases like "a govern- ment of laws, not men" is that the members of the bureaucracy respect their own proce- dures. Certainly, quite aside from the specific hazards to the gasoline rationing program in- volved in by-passing the Eligibility Committee, a willingness on the part of officials to disre- gard the established rules of OPA could even- tually lead to generally unfortunate results. Whether this consideration in itself justified McCullough in waiting patiently for so long while the Committee struggled with the Vet- erans' Gasoline issue is another matter, and one on which opinions will differ. The answers to all such questions, as to the questions sug- gested above on the use of logical doctrine, are not easy. Different readers will vary greatly in their evaluations and their conclusions. There is no absolute right answer; various sensible and defensible answers are possible. The only general guide that can be suggested is the desirability of weighing the manifold consider- ations rather than coming to a conclusion on the basis of one or two isolated factors or principles. 759 The story of the veterans' gasoline ration is told in somewhat abbreviated form in Vic- tor A. Thompson, The Regulatory Process in OPA Rationing, New York, King's Crown Press, 1950, pp. 242-250; elsewhere in the same volume, Professor Thompson analyzes the functioning of the Gasoline Eligibility Committee and other matters germane to this particular problem. The basic draft of this present study was prepared in 1945 or 1946 but some use has been made of Professor Thompson's work during the course of final revision in 1951. UNIVERSITY OF MICHIGAN 3 9015 06792 8690 The ICP publishes in individual pamphlet form the public administration case studies listed below. Included are those previously published by the ICP's predecessor, the Committee on Public Administration Cases. Twenty-six of the case studies (those asterisked) have been collected, with other materials in a Case Book PUBLISHED BY HARCOURT, BRACE AND COMPANY, INC., NEW YORK: Cases in Public Administration and Policy Development. 1952. PAMPHLETS DISTRIBUTED BY THE POLYGRAPHIC COMPANY OF AMERICA, INC., NEW YORK: CPAC Case Studies, 1948-1951 (previously published by the Committee on Public Administra- tion Cases) PUBLICATIONS OF THE INTER-UNIVERSITY CASE PROGRAM *The Air Search and Rescue Program. 1950 *The Attack on the Cost of Living Index. 1951 *The Battle of Blue Earth County. 1950, revised 1950 *The Cambridge City Manager. 1951 The Consumers' Counsel. 1949, revised 1950 *The Defense Plant Corporation. 1950 *The Disposal of the Aluminum Plants. 1948, revised 1952 *The FBI Retirement Bill. 1949 The Feasibility Dispute. 1950 *The Foreign Service Act of 1946. 1949, revised 1952 *Gotham in the Air Age. 1950, revised 1952 *Indonesian Assignment. 1950 *The Kings River Project. 1949, revised 1950 The Latin American Proceeding. 1949 *The Natural Cement Issue. 1950 *The National Labor Relations Board Field Examiner. 1951 *The Office of Education Library. 1950 *The Reconversion Controversy. 1950 *The Sale of the Tankers. 1950, revised 1952 *Self-Insurance in the Treasury. 1949, revised 1952 Smith and the OPA. 1950 1. *2. #3. *The Transfer of the Children's Bureau. 1949, revised 1952 *The TVA Ammonia Plant. 1950 *4. #5. *6. $7. *8. *9. ICP Case Series, in progress, 1951- • The Firing of Pat Jackson. 1951 Cancellation of the Ration Stamps. 1952 The Emergency Rubber Project. 1952 The Glavis-Ballinger Dispute. 1952 The Regional Director and the Press. 1952 Production Planning in the Patent Office. 1952 Edited by Harold Stein The Rural Electrification Administration Personnel Report. 1952 The Veterans' Gas Ration. 1952 The New York City Health Centers. 1952 W. Scott Payne Kathryn Smul Arnow Paul N. Ylvisaker Frank C. Abbott Kathryn Smul Arnow Clifford J. Durr Harold Stein Joseph F. Marsh, Jr. John Brigante Harold Stein Herbert Kaufman Charles Wolf, Jr. Arthur A. Maass W. Scott Payne Paul N. Ylvisaker William H. Riker Corinne Silverman Jack W. Peltason Louis W. Koenig Kathryn Smul Arnow Robert L. Gold E. Drexel Godfrey, Jr. Ellen St. Sure William H. Riker Martin Kriesberg Martin Kriesberg Winifred McCulloch Arch Dots on Winifred McCulloch William H. Riker Herbert Kaufman