A-49892, JULY 11, 1933, 13 COMP. GEN. 15

A-49892: Jul 11, 1933

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IS NOT SUBJECT TO THE PERCENTAGE REDUCTION REQUIRED BY SECTION 2. WHOSE COMPENSATION IS AT THE TIME OF SUCH LOANING. WILL CONTINUE TO BE SUBJECT TO SUCH REDUCTION EVEN THOUGH HE MAY BE FURLOUGHED OR GRANTED LEAVE WITHOUT PAY FROM HIS REGULAR POSITION FOR THE PERIOD OF SUCH LOANING. AS FOLLOWS: AT THE THIRD MEETING OF THE SPECIAL INDUSTRIAL RECOVERY BOARD THIS AFTERNOON THE QUESTION OF THE 15 PERCENT SALARY CUT WAS CONSIDERED. 000 WAS ADOPTED. THE PRESIDENT IS HEREBY AUTHORIZED TO ESTABLISH SUCH AGENCIES. IT IS UNDERSTOOD THE SPECIAL INDUSTRIAL RECOVERY BOARD HAS BEEN CREATED BY THE PRESIDENT UNDER AUTHORITY OF THIS STATUTORY PROVISION AND THAT THE BOARD HAS FIXED A MAXIMUM SALARY RATE OF $6.

A-49892, JULY 11, 1933, 13 COMP. GEN. 15

ECONOMY ACT, AMENDED - COMPENSATION REDUCTION - NATIONAL INDUSTRIAL RECOVERY ADMINISTRATION THE COMPENSATION OF OFFICERS AND EMPLOYEES APPOINTED OR EMPLOYED FOR SERVICE WITH THE NATIONAL INDUSTRIAL RECOVERY ADMINISTRATION, PURSUANT TO SECTION 2, TITLE I, OF THE NATIONAL INDUSTRIAL RECOVERY ACT OF JUNE 16, 1933, 48 STAT. 195, IS NOT SUBJECT TO THE PERCENTAGE REDUCTION REQUIRED BY SECTION 2, TITLE II, OF THE ACT OF MARCH 20, 1933, 48 STAT. 13. ANY OFFICER OR EMPLOYEE OF THE FEDERAL GOVERNMENT LOANED, DETAILED, OR ASSIGNED TO DUTY WITH THE NATIONAL INDUSTRIAL RECOVERY ADMINISTRATION, AND WHOSE COMPENSATION IS AT THE TIME OF SUCH LOANING, DETAIL, OR ASSIGNMENT SUBJECT TO THE PERCENTAGE REDUCTION IN COMPENSATION UNDER TITLE II OF THE ACT OF MARCH 20, 1933, WILL CONTINUE TO BE SUBJECT TO SUCH REDUCTION EVEN THOUGH HE MAY BE FURLOUGHED OR GRANTED LEAVE WITHOUT PAY FROM HIS REGULAR POSITION FOR THE PERIOD OF SUCH LOANING, DETAIL, OR ASSIGNMENT.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF COMMERCE, JULY 11, 1933:

CONSIDERATION HAS BEEN GIVEN TO YOUR LETTER OF JULY 10, 1933, AS FOLLOWS:

AT THE THIRD MEETING OF THE SPECIAL INDUSTRIAL RECOVERY BOARD THIS AFTERNOON THE QUESTION OF THE 15 PERCENT SALARY CUT WAS CONSIDERED.

THE BOARD HAD PREVIOUSLY PASSED A RESOLUTION WHEREIN A MAXIMUM SALARY OF $6,000 WAS ADOPTED. IT HAS NOT BEEN DECIDED WHETHER OR NOT THIS SHOULD BE CONSIDERED AS A BASE OR NET SALARY OR IF THE 15 PERCENT CUT SHOULD BE APPLIED TO THE PERSONNEL IN GENERAL JOHNSON'S ADMINISTRATIVE FORCE.

IN ORDER THAT THE PAYROLL FOR THE ADMINISTRATION MAY BE MADE UP RENDER A DECISION AS TO WHETHER OR NOT THE 15 PERCENT CUT SHOULD APPLY TO THE PERSONNEL OF THE NATIONAL INDUSTRIAL RECOVERY ADMINISTRATION.

SECTION 2, TITLE I, OF THE NATIONAL INDUSTRIAL RECOVERY ACT, APPROVED JUNE 16, 1933, 48 STAT. 195, PROVIDES AS FOLLOWS:

SEC. 2. (A) TO EFFECTUATE THE POLICY OF THIS TITLE, THE PRESIDENT IS HEREBY AUTHORIZED TO ESTABLISH SUCH AGENCIES, TO ACCEPT AND UTILIZE SUCH VOLUNTARY AND UNCOMPENSATED SERVICES, TO APPOINT, WITHOUT REGARD TO THE PROVISIONS OF THE CIVIL SERVICE LAWS, SUCH OFFICERS AND EMPLOYEES, AND TO UTILIZE SUCH FEDERAL OFFICERS AND EMPLOYEES, AND, WITH THE CONSENT OF THE STATE, SUCH STATE AND LOCAL OFFICERS AND EMPLOYEES, AS HE MAY FIND NECESSARY, TO PRESCRIBE THEIR AUTHORITIES, DUTIES, RESPONSIBILITIES, AND TENURE, AND WITHOUT REGARD TO THE CLASSIFICATION ACT OF 1923, AS AMENDED, TO FIX THE COMPENSATION OF ANY OFFICERS AND EMPLOYEES SO APPOINTED.

(B) THE PRESIDENT MAY DELEGATE ANY OF HIS FUNCTIONS AND POWERS UNDER THIS TITLE TO SUCH OFFICERS, AGENTS, AND EMPLOYEES AS HE MAY DESIGNATE OR APPOINT, AND MAY ESTABLISH AN INDUSTRIAL PLANNING AND RESEARCH AGENCY TO AID IN CARRYING OUT HIS FUNCTIONS UNDER THIS TITLE.

IT IS UNDERSTOOD THE SPECIAL INDUSTRIAL RECOVERY BOARD HAS BEEN CREATED BY THE PRESIDENT UNDER AUTHORITY OF THIS STATUTORY PROVISION AND THAT THE BOARD HAS FIXED A MAXIMUM SALARY RATE OF $6,000 PER ANNUM FOR PERSONNEL EMPLOYED OR APPOINTED BY OR UNDER THE BOARD.

THE STATUTE NOT ONLY AUTHORIZES THE APPOINTMENT OR EMPLOYMENT OF PERSONNEL, BUT ALSO AUTHORIZES THE USE OF EXISTING FEDERAL OFFICERS AND EMPLOYEES.

AS SECTION 2, TITLE I, OF THE NATIONAL INDUSTRIAL RECOVERY ACT, SUPRA, SPECIFICALLY EXCEPTS OFFICERS AND EMPLOYEES NEWLY APPOINTED OR EMPLOYED UNDER THE TERMS OF THE ACT, FROM CIVIL SERVICE LAWS AND THE CLASSIFICATION ACT OF 1923, AS AMENDED, AND AUTHORIZES THE PRESIDENT, AND/OR SUCH OFFICERS, AGENTS, AND EMPLOYEES TO WHOM HE MAY DELEGATE SUCH AUTHORITY, TO FIX THE COMPENSATION OF THE NEWLY APPOINTED OR EMPLOYED OFFICERS AND EMPLOYEES, IT FOLLOWS THAT AT THE DATE OF THE APPROVAL OF THE ACT (JUNE 16, 1933) THERE WAS NO EXISTING LAW, SCHEDULE, EXECUTIVE ORDER, OR DEPARTMENTAL ORDER BY WHICH THE COMPENSATION OF SUCH OFFICERS AND 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. SEE DECISIONS OF JUNE 20, 1933, A-49565, 12 COMP. GEN. 655; JUNE 28, 1933, A-49652; AND JULY 6, 1933, A-49751, 13 COMP. GEN. 3. HAVE TO ADVISE, THEREFORE, THAT THE PERCENTAGE REDUCTIONS UNDER TITLE II OF THE ACT OF MARCH 20, 1933, ARE NOT APPLICABLE TO NEWLY APPOINTED OR EMPLOYED OFFICERS AND EMPLOYEES OF THE NATIONAL INDUSTRIAL RECOVERY ADMINISTRATION.

HOWEVER, ANY OFFICER OR EMPLOYEE OF THE FEDERAL GOVERNMENT LOANED, DETAILED, OR ASSIGNED TO DUTY WITH THE NATIONAL INDUSTRIAL RECOVERY ADMINISTRATION, AND WHOSE COMPENSATION IS AT THE TIME OF SUCH LOANING, DETAIL, OR ASSIGNMENT SUBJECT TO THE PERCENTAGE REDUCTION IN COMPENSATION UNDER TITLE II OF THE ACT OF MARCH 20, 1933, WILL CONTINUE TO BE SUBJECT TO SUCH REDUCTION EVEN THOUGH HE MAY BE FURLOUGHED OR GRANTED LEAVE WITHOUT PAY FROM HIS REGULAR POSITION FOR THE PERIOD OF SUCH LOANING, DETAIL, OR ASSIGNMENT. SEE DECISION OF JULY 8, 1933, A-49756, 13 COMP. GEN. 6.