B-73757, OCT 14, 1948

B-73757, OCT 14, 1948

PRECIS-UNAVAILABLE

THE HONORABLE, THE POSTMASTER GENERAL:

CONSIDERATION HAS BEEN GIVEN YOUR LETTER OF JULY 29, 1948 (REFERENCE 15), RELATIVE TO THAT PORTION OF THE DECISION TO YOU OF APRIL 8, 1948, B-73757, 27 COMP.GEN. 608, IN WHICH IT WAS STATED THAT IT WAS PROPER TO ADVANCE TO JACKSONVILLE POST OFFICE TO A FIRST-CLASS POST OFFICE UPON COMBINING THE RECEIPTS OF THAT OFFICE WITH RECEIPTS OF CAMP LEJEUNE AND MIDWAY PARK BRANCH OFFICES FOR THE CALENDAR YEAR 1947, "PROVIDED, OF COURSE, THAT THE RECEIPTS OF THE CAMP LEJEUNE AND MIDWAY PARK BRANCHES ARE NOT CONSIDERED IN CONNECTION WITH ANY ADJUSTMENT AT THE NEW BERN OFFICE WHICH MAY BE MADE SUBSEQUENT TO SUCH CONSOLIDATION."

IT APPEARS THAT THE CAMP LEJEUNE AND MIDWAY PARK OFFICES WERE TRANSFERRED FROM THE NEW BERN TO THE JACKSONVILLE OFFICE AFTER CLOSE OF THE CALENDAR YEAR 1947. IN YOUR PRESENT LETTER YOU CALL ATTENTION TO THE DECISION MAY 24, 1929, A-27146, WHEREIN IT WAS HELD THAT UNDER THE ACT OF FEBRUARY 28, 1925, 43 STAT. 1053, THE SALARY OF A POSTMASTER AT A FIRST, SECOND, OR THIRD CLASS POST OFFICE IS FOR ADJUSTMENT ON THE BASIS OF THE GROSS POSTAL RECEIPTS OF THE OFFICE DURING THE PROCEEDING CALENDAR YEAR REGARDLESS OF THE FACT THAT SUBSEQUENT TO SUCH CALENDAR YEAR ONE OR MORE STATIONS OF THAT OFFICE MAY HAVE BEEN MADE INDEPENDENT OFFICES.

THE BASIC FORMULA IN THE 1925 ACT FOR COMPUTING THE COMPENSATION OF POSTMASTERS IS THE SAME AS NOW PRESCRIBED IN SECTION 8(A) OF THE POSTAL EMPLOYEES PAY ACT OF 1945, 59 STAT. 437, WHICH PROVIDES:

"SEC. 8. (A) THE COMPENSATION OF POSTMASTER SHALL BE ANNUAL SALARIES TO BE FIXED BY THE POSTMASTER GENERAL FROM THEIR RESPECTIVE QUARTERLY RETURNS FOR THE CALENDAR YEAR IMMEDIATELY PRECEDING THE ADJUSTMENT BASED ON GROSS POSTAL RECEIPTS AT THE FOLLOWING RATES: PROVIDED, THAT SUBSECTION (C) OF SECTION 1001 OF THE REVENUE ACT OF 1932 (47 STAT. 285), AS AMENDED, IS HEREBY REPEALED, RETROACTIVE TO JANUARY 1, 1944, AND THEREAFTER THE GROSS POSTAL RECEIPTS SHALL BE COUNTED FOR THE PURPOSE OF DETERMINING THE CLASS OF THE POST OFFICE OR THE COMPENSATION OR ALLOWANCES OF POSTMASTERS OR OTHER EMPLOYEES, WHOSE COMPENSATION OR ALLOWANCES ARE BASED ON THE ANNUAL RECEIPTS OF SUCH OFFICES: PROVIDED FURTHER, THAT IN FIXING THE SALARIES OF THE POSTMASTER AND SUPERVISORY EMPLOYEES IN THE POST OFFICE AT WASHINGTON, DISTRICT OF COLUMBIA, THE POSTMASTER GENERAL MAY, IN HIS DISCRETION, ADD NOT TO EXCEED 75 PER CENTUM TO THE GROSS RECEIPTS OF THAT OFFICE ***."

IN THE DECISION OF A-27146, REFERRED TO BY YOU, AFTER QUOTING THE FORMULA FOR COMPUTING THE POSTMASTER'S SALARY, IT WAS STATED:

"UNDER THE PROVISIONS OF THE STATUTE THE COMPENSATION OF POSTMASTERS IS AUTHORIZED TO BE ASCERTAINED AND FIXED BY THE POSTMASTER GENERAL FROM THEIR RESPECTIVE QUARTERLY RETURNS FOR THE CALENDAR YEAR IMMEDIATELY PRECEDING THE ADJUSTMENT BASED ON GROSS POSTAL RECEIPTS, AT THE RATES FIXED IN THE ACT. THERE IS FOUND NO AUTHORITY OF LAW TO MAKE ANY DEDUCTIONS FROM THE GROSS RECEIPTS AS REPORTED IN THE QUARTERLY RETURNS OF AMOUNTS RECEIVED FROM STATIONS WHICH LATER WERE MADE INDEPENDENT OFFICES. THE BASIS FOR THE SALARY ADJUSTMENT IS THE GROSS POSTAL RECEIPTS AS ASCERTAINED AND FIXED FROM THE QUARTERLY RETURNS.

"THE POSTMASTER'S SALARY FOR ANY GIVEN FISCAL YEAR IS BASED ON CONDITIONS AS THEY EXISTED IN THE PRECEDING CALENDAR YEAR NOT ON CONDITIONS EXISTING IN THE FISCAL YEAR FOR WHICH THE SALARY IS ADJUSTED."

IT WOULD APPEAR THAT THE BASIC REASON FOR USING THE RECEIPTS OF THE PRIOR CALENDAR YEAR IN COMPUTING THE SALARY OF THE POSTMASTER IS THAT SUCH RECEIPTS REFLECT APPROXIMATELY THE RECEIPTS WHICH MAY BE ANTICIPATED IN THE FOLLOWING YEAR, SO THAT THE SALARY BASED THEREON WILL COMPENSATE THE POSTMASTER SUBSTANTIALLY FOR THE SERVICES WHICH HE MAY BE REQUIRED TO RENDER. SUCH AN ADJUSTMENT DOES IN NO WAY REPRESENT COMPENSATION TO COVER INCREASED OR DECREASED DUTY FOR THE PREVIOUS CALENDAR YEAR. TO HOLD OTHERWISE MIGHT RESULT-- IN AN EXTREME CASE-- IN A POSTMASTER HAVING LITTLE OR NO BUSINESS TO TRANSACT IN A PARTICULAR FISCAL YEAR, BY REASON OF THE SEPARATION OF NUMEROUS BRANCH OFFICES, BUT NEVERTHELESS, RECEIVING A SALARY BASED UPON A VERY LARGE VOLUME OF BUSINESS AS REPRESENTED BY THE GROSS RECEIPTS OF BRANCH OFFICES IN THE PRIOR CALENDAR YEAR. THIS WOULD BE AN ABSURD RESULT AND SHOULD LIGHTLY NOT BE IMPUTED TO THE CONGRESS. SEE 19 COMP.GEN. 516, 517, AND CASES CITED THEREIN.

ACCORDINGLY, AS THE GROSS RECEIPTS OF THE NEW BERN OFFICE FOR THE CALENDAR YEAR 1947 DO NOT HAVE ANY PROXIMATE RELATION TO THE ANTICIPATED RECEIPTS OF THAT OFFICE AS CONSTITUTED AFTER THE SEPARATION OF THE TWO BRANCH OFFICES, THE SALARY OF THE POSTMASTER AT NEW BERN SHOULD BE ADJUSTED AS OF JULY 1, 1948, TO THE SALARY, AUTHORIZED BY THE POSTAL EMPLOYEES PAY ACT, AS AMENDED, COMPUTED UPON THE GROSS RECEIPTS OF THE NEW BERN POST OFFICE FOR THE CALENDAR YEAR 1947 AFTER DEDUCTING THEREFROM THE RECEIPTS, FOR THAT CALENDAR YEAR, OF THE TWO BRANCH POST OFFICES WHICH WERE TRANSFERRED TO THE JACKSONVILLE OFFICE. ANY DECISION TO THE CONTRARY WILL NOT BE FOLLOWED HEREAFTER.