A-49565, JUNE 20, 1933, 12 COMP. GEN. 655

A-49565: Jun 20, 1933

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AUTHORIZES THE COORDINATOR TO FIX THE COMPENSATION OF EMPLOYEES SO APPOINTED THERE IS NO BASIC COMPENSATION TO BE DETERMINED UNDER SECTION 2. THE COMPENSATION OF EMPLOYEES SO APPOINTED IS NOT SUBJECT TO REDUCTION UNDER THE ECONOMY ACT. PROVIDES THAT THE COORDINATOR "SHALL HAVE SUCH POWERS AND DUTIES AS ARE HEREINAFTER SET FORTH AND PRESCRIBED. SECTION 14 OF THE SAME ACT PROVIDES "THE EXPENSES OF THE COORDINATOR EXCEPT SO FAR AS THEY ARE BORNE BY THE COMMISSION IN ACCORDANCE WITH THE PROVISIONS OF SECTION 2. SAID FUND IS HEREBY APPROPRIATED FOR THE PAYMENT OF SUCH EXPENSES.'. YOU WILL NOTICE FROM THE ABOVE THAT THE ENTIRE EXPENSES OF THE COORDINATOR WILL BE PAID FROM A FUND OBTAINED FROM ASSESSMENTS ON THE CARRIERS.

A-49565, JUNE 20, 1933, 12 COMP. GEN. 655

ECONOMY ACT, AMENDED - PERCENTAGE REDUCTIONS - EMERGENCY RAILROAD TRANSPORTATION COORDINATOR AS THE PROVISIONS OF SECTION 2 OF THE EMERGENCY RAILROAD TRANSPORTATION ACT OF JUNE 16, 1933, EXCEPT EMPLOYEES APPOINTED BY THE COORDINATOR FROM THE CIVIL SERVICE LAWS AND CLASSIFICATION ACTS, AND AUTHORIZES THE COORDINATOR TO FIX THE COMPENSATION OF EMPLOYEES SO APPOINTED THERE IS NO BASIC COMPENSATION TO BE DETERMINED UNDER SECTION 2, TITLE II, OF THE ACT OF MARCH 20, 1933, UPON WHICH ANY PERCENTAGE REDUCTION COULD BE BASED AND, ACCORDINGLY, THE COMPENSATION OF EMPLOYEES SO APPOINTED IS NOT SUBJECT TO REDUCTION UNDER THE ECONOMY ACT, AS AMENDED.

COMPTROLLER GENERAL MCCARL TO THE FEDERAL COORDINATOR OF TRANSPORTATION, JUNE 20, 1933:

THERE HAS BEEN RECEIVED YOUR LETTER OF JUNE 18, 1933, AS FOLLOWS:

SECTION 2 OF THE EMERGENCY RAILROAD TRANSPORTATION ACT APPROVED JUNE 16, 1933, PROVIDES THAT THE COORDINATOR "SHALL HAVE SUCH POWERS AND DUTIES AS ARE HEREINAFTER SET FORTH AND PRESCRIBED, AND MAY, WITH THE APPROVAL OF THE PRESIDENT, AND WITHOUT REGARD TO THE CIVIL SERVICE LAWS AND THE CLASSIFICATION ACT OF 1923, AS AMENDED, APPOINT AND FIX THE COMPENSATION OF SUCH ASSISTANTS AND AGENTS, IN ADDITION TO THE ASSISTANCE PROVIDED BY THE COMMISSION, AS MAY BE NECESSARY TO THE PERFORMANCE OF HIS DUTIES UNDER THIS ACT.' SECTION 14 OF THE SAME ACT PROVIDES "THE EXPENSES OF THE COORDINATOR EXCEPT SO FAR AS THEY ARE BORNE BY THE COMMISSION IN ACCORDANCE WITH THE PROVISIONS OF SECTION 2, BUT NOT INCLUDING THE EXPENSES OF THE COORDINATING COMMITTEES, SHALL BE ALLOWED AND PAID, ON THE PRESENTATION OF ITEMIZED VOUCHERS THEREFOR APPROVED BY THE COORDINATOR, OUT OF A FUND OBTAINED FROM ASSESSMENTS ON THE CARRIERS, AND SAID FUND IS HEREBY APPROPRIATED FOR THE PAYMENT OF SUCH EXPENSES.' YOU WILL NOTICE FROM THE ABOVE THAT THE ENTIRE EXPENSES OF THE COORDINATOR WILL BE PAID FROM A FUND OBTAINED FROM ASSESSMENTS ON THE CARRIERS. PERSONS APPOINTED UNDER THE TERMS OF THE EMERGENCY RAILROAD TRANSPORTATION ACT BE SUBJECT TO THE 15 PERCENT REDUCTION IN SALARY?

PERMIT ME TO CALL ATTENTION TO THE FACT THAT THE APPLICATION OF THE 15 PERCENT REDUCTION WILL IN THIS INSTANCE SERVE NO USEFUL PURPOSE, BUT WILL ONLY BE A SOURCE OF INCONVENIENCE AND ANNOYANCE.

SECTION 2, TITLE II OF THE ACT OF MARCH 20, 1933, 48 STAT. 12, PROVIDES AS FOLLOWS:

SEC. 2. FOR THAT PORTION OF THE FISCAL YEAR 1933 BEGINNING WITH THE FIRST DAY OF THE CALENDAR MONTH FOLLOWING THE MONTH DURING WHICH THIS ACT IS ENACTED, AND FOR THE FISCAL YEAR ENDING JUNE 30, 1934, THE COMPENSATION OF EVERY OFFICER OR EMPLOYEE SHALL BE DETERMINED AS FOLLOWS:

(A) THE COMPENSATION WHICH SUCH OFFICER OR EMPLOYEE WOULD RECEIVE UNDER THE PROVISIONS OF ANY EXISTING LAW, SCHEDULE, REGULATION, EXECUTIVE ORDER, OR DEPARTMENTAL ORDER SHALL FIRST BE DETERMINED AS THOUGH THIS TITLE (EXCEPT SECTION 4) HAD NOT BEEN ENACTED.

(B) THE COMPENSATION AS DETERMINED UNDER SUBPARAGRAPH (A) OF THIS SECTION SHALL BE REDUCED BY THE PERCENTAGE, IF ANY, DETERMINED IN ACCORDANCE WITH SECTION 3 OF THIS TITLE.

AS THE PROVISIONS OF SECTION 2 OF THE EMERGENCY RAILROAD TRANSPORTATION ACT OF JUNE 16, 1933, QUOTED IN YOUR SUBMISSION SPECIFICALLY EXCEPTS EMPLOYEES APPOINTED UNDER THE TERMS OF THAT ACT FROM THE CIVIL SERVICE LAWS AND THE CLASSIFICATION ACT OF 1923, AS AMENDED, AND AUTHORIZES THE COORDINATOR TO FIX THE COMPENSATION OF SUCH EMPLOYEES, IT FOLLOWS THAT AT THE DATE OF THE APPROVAL OF THAT ACT, JUNE 16, 1933, THERE WAS NO EXISTING LAW, SCHEDULE, EXECUTIVE ORDER OR DEPARTMENTAL ORDER BY WHICH THE COMPENSATION OF SUCH EMPLOYEES COULD BE DETERMINED. ACCORDINGLY, THERE IS NO BASIC COMPENSATION UPON WHICH TO APPLY THE PERCENTAGE REDUCTION ESTABLISHED BY THE EXECUTIVE ORDER ISSUED UNDER SECTION 3, TITLE II, OF THE ACT OF MARCH 20, 1933; 12 COMP. GEN. 580. I HAVE TO ADVISE, THEREFORE, THAT THE PERCENTAGE REDUCTIONS UNDER TITLE II OF THE ACT OF MARCH 20, 1933, ARE NOT APPLICABLE TO EMPLOYEES APPOINTED BY YOU UNDER THE TERMS OF SECTION 2 OF THE EMERGENCY RAILROAD TRANSPORTATION ACT.